BRIEF ABOUT PRICE INEQUITY
Price inequity refers to the pricing strategy that charges different prices to customers for same product or services. In price discrimination, customers are charged the maximum price they can pay. Exploiting demand characteristics to allow the same product to be sold at various prices unrelated to the cost of supply is called price inequity.
Price discrimination is not possible under perfect competition market, even the market are kept separately. Demand in every market in since, perfectly inelastic, every marketer would like to sell in the market in which he gets the highest price.
Example : I went to big bazaar to buy grocery and food items, there were offer that people buying for Rs. 2000 will get off of Rs.500 and the customers purchasing for Rs. 4000 will get Rs.1000 off . So, we can see price discrimination.
Price inequity refers to the pricing strategy that charges different prices to customers for same product or services. In price discrimination, customers are charged the maximum price they can pay. Exploiting demand characteristics to allow the same product to be sold at various prices unrelated to the cost of supply is called price inequity.
Price discrimination is not possible under perfect competition market, even the market are kept separately. Demand in every market in since, perfectly inelastic, every marketer would like to sell in the market in which he gets the highest price.
Example : I went to big bazaar to buy grocery and food items, there were offer that people buying for Rs. 2000 will get off of Rs.500 and the customers purchasing for Rs. 4000 will get Rs.1000 off . So, we can see price discrimination.
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