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4.1.5.7 Price Discrimination (AQA A Level Economics Teaching Powerpoint)

Level:
A-Level
Board:
AQA

Last updated 13 Sept 2023

This editable and downloadable PowerPoint covers Price Discrimination which is most likely to happen in imperfectly competitive markets and especially monopoly.

Price discrimination is when a firm charges different prices to different customers for the same good or service. The firm will usually charge customers with different price sensitivities different amounts - customers who are less price-sensitive will be charged a higher price, while those who are more price-sensitive will be charged less. The goal of price discrimination is to maximize profits by extracting the most value from each customer. A common example is airline tickets, where business travelers might pay a higher price for tickets than leisure travelers. Another example is coupons - they're a way to offer discounts to price-sensitive customers while charging the full price to others.

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