you buy some products from new delhi but when you buy same product from your town or any other locations.we have observed that prices are different from new delhi.why ,it has heepend?
why,prices are vary according to the locations?
you go to buy a bike like you are willing to pay maximum 1 lakh on bike.you go to buy bike from new delhi's showroom.suppose they have price of apache 160 RTR single disc Rs.85000.when you again go to buy same bike from your patna.They have price Rs.82000,then what you noticed,you noticed that price is Rs.3000 more in delhi.so we conclude that prices are different at different markets,for different groups of people.
Here also economics plays a vital role called price discrimination.
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