2 questions 250 response

2 questions 250 response

Question :Discuss the pricing policy of price discrimination. Provide the economic reasoning for movie theaters, airlines, and many other businesses to charge customers different prices based on time of the day, age, and purchase dates. Why?Provide an example of a price discrimination for a good or service that you considered unfair. Do you still believe that the discrimination is unjustifiable?

250 words

Question: An important law in economics is the “Law of Diminishing Marginal Utility”. Discuss what this law is and provide an example of diminishing marginal utility you’ve encountered recently.

250 words

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Question 1

Price discrimination refers to a pricing policy which charges consumers varying prices for identical services or goods based on a specified criterion (Colombo, 2015). Under pure price discrimination, providers tend to charge consumers the maximum price they are willing to pay. Additional forms of price discrimination include grouping customers according to certain attributes such as age, time of purchase and purchase dates whereby each group is charged a different price (Colombo, 2015).

(600 words)