Examples of price discrimination Antonio and Dina are debating the use of studen

Question

Examples of price discrimination

Antonio and Dina are debating the use of student discounts by local theaters near school. Antonio argues, “When theaters offer discounts to students with valid identification, it is price discrimination, because they are attempting to separate the market into two groups—each with different demands for that particular good.” Dina responds with, “This is not a form of price discrimination, because there is no age restriction for students.”

Economists generally agree with :

A) Dina

B) Antonio

Explanation / Answer

Economists generally agree with Antonio. Whenever the sellere is able to divide the customers into groups or market into two groups so that they can charge different prices from the two groups this will be considered as price discrimination. It has nothing to do with the age of the consumers.

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