Price Discrimination:-
The producer sold the same product and service at different prices and it is unrelated to the cost of supply.
Example:-
If you want to join in government college the fees of the college has different prices on category of the students like ST/SC has 30% deduction , OBC has 20% deduction and for general they have no deduction this is known as price discrimination.
Types of Price Discrimination
1. Perfect Price:-
When price of the product has been increased to maximum level, the demand of product will be increased. It is also known as first degree discrimination.
Example:-
When any one person booked in Duronto express the railway fare will be increased and demand of the train will increased.
2. Market Based Price:-
There are different price for different quantity of goods for the consumer. It is also known as second degree discrimination.
Example:-
If a man buys a chicken of 1 kg the price of chicken was rs.200 and if another person buys a chicken of 1.5 kg the price of the chicken was rs.300 . It has different price for different quantity.
3. Price Discrimination by Self Selection:-
It is also known as third degree Discrimination
Example:-
In bus they offered different prices like Normal person, Daily pass, Monthly pass, Senior citizen, For Handicapped they have different price.
The producer sold the same product and service at different prices and it is unrelated to the cost of supply.
Example:-
If you want to join in government college the fees of the college has different prices on category of the students like ST/SC has 30% deduction , OBC has 20% deduction and for general they have no deduction this is known as price discrimination.
Types of Price Discrimination
1. Perfect Price:-
When price of the product has been increased to maximum level, the demand of product will be increased. It is also known as first degree discrimination.
Example:-
When any one person booked in Duronto express the railway fare will be increased and demand of the train will increased.
2. Market Based Price:-
There are different price for different quantity of goods for the consumer. It is also known as second degree discrimination.
Example:-
If a man buys a chicken of 1 kg the price of chicken was rs.200 and if another person buys a chicken of 1.5 kg the price of the chicken was rs.300 . It has different price for different quantity.
3. Price Discrimination by Self Selection:-
It is also known as third degree Discrimination
Example:-
In bus they offered different prices like Normal person, Daily pass, Monthly pass, Senior citizen, For Handicapped they have different price.
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