In markets with different demand curves for the same good, different prices generate less profit than a single price.

Question

Quizplus · Accepted Answer

In markets with different demand curves for the same good, different prices can generate more profit than a single price. This strategy is known as price discrimination, where a business can charge different prices to different customers based on their willingness to pay. By charging a higher price to customers who are willing to pay more, the business can increase its profits overall.

In Markets with Different Demand Curves for the Same Good