11+ Price Discrimination Diagram. If demand is elastic, revenue is gained by reducing price, but if demand is inelastic, revenue is gained by raising price. Price discrimination form # 2.
The hurdle model is associated with economist professor robert frank. In this video i explain how to draw a monopoly with first degree price discrimination. Try pausing the video to see if you can show price, consumer surplus.
If demand is elastic, revenue is gained by reducing price, but if demand is inelastic, revenue is gained by raising price.
11+ Price Discrimination Diagram. Ped = 1ped < 1ped > 1pricedecreasepriceincreaseelasticity and. Price discrimination, also referred to as price differentiation, occurs when a firm sells the same product at different prices, either to the same or to optimise price discrimination, firms will have to control and prevent reselling, and they will also have to sort consumers depending on their willingness. Price differentiation is distinguished from product differentiation by the more substantial difference in production cost for the. Charging dierent prices to dierent groups of customers senior or student discounts.