What is the difference between price discrimination and other forms of discrimination?
What will be an ideal response?
Discrimination based on race or gender and other arbitrary characteristics is illegal under civil rights laws. Price discrimination generally is legal, although it could be illegal under the Robinson-Patman Act if its effect is to reduce competition in an industry. Price discrimination involves charging people different prices based on differences in their willingness to pay, when these differences are not due to differences in costs.
You might also like to view...
You are likely to think that the relative price of your good has risen and you should increase your output if you expected
A) the inflation rate to be 10% and the price of your good rose 7%. B) the inflation rate to be 10% and the price of your good rose 10%. C) the inflation rate to be 10% and the price of your good rose 13%. D) the inflation rate to be 0% and the price of your good fell 10%.
The ceteris paribus assumption is important in economics because
A) all empirical data are equal. B) it would be impossible to relate the effects of changes in one variable on another without holding some variables constant. C) economic data move very slowly over time and so they can always be considered constant. D) models are always complex and require as many variables as possible.