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Price Discrimination

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Last updated date: 22nd Mar 2024
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Introduction of Price Discrimination

The market is flooded with the resources, is the common phrase that the stunned get to hear in today’s date. However, that doesn’t mean that any resources that are available in the market are of the right kind and are reliable for the students to use in the exams. In this kind of scenario, Vedantu comes to assist the students with the most reliable content online. The high quality teachers of Vedantu have prepared article on Price Discrimination – Types, Examples and Fun Facts . The content could be downloaded in the PDF format by the students.  It could be accessed through any apple, android or windows device. Jumping the barriers of location and money, the content provided by Vedantu is free of cost, so the students do not have to pay any money.


Overview - Perfect Price Discrimination 

Price Discrimination definition is something which every student must be aware of in order to gain effective knowledge in the study of economics. It is a microeconomic pricing strategy in which similar or largely identical commodities are transacted at different prices by the same vendor in different markets. It relies on the customer’s willingness to pay and the elasticity of demand. Other factors of Price Discrimination include market share, monopolistic market, uniqueness of the product, sole pricing power, etc. The prices are higher than the equilibrium price under Price Discrimination. Other terms used in place of Price Discrimination include equity pricing, dual pricing, tiered pricing and preferential pricing.


Perfect Price Discrimination 

The highest level of Price Discrimination is termed as perfect Price Discrimination. It is also called first-degree Price Discrimination. In this case, the firm tries to gain as much market surplus it can achieve. First-degree Price Discrimination observes Pareto efficient level of output where marginal cost is equal to the marginal willingness to pay. As seen in the above figure, the producer surplus is equal to the total surplus which is (A+B). Therefore, you can observe that there is no deadweight loss even though there is no consumer surplus either. In the end, the quantity and price become equal and it turns into perfect competition. So, in practical scenarios, it is agreed that perfect Price Discrimination cannot exist. In real life, the closest one can get to perfect Price Discrimination through second-degree Price Discrimination or two-part tariff. 


The Vedantu Edge

The students during their normal study routine face many challenges. Given the level of education and competition today, the road blocks for the students are unconventional today. To become instrumental for the students to beat the unconventional challenges in the competition today, Vedantu is actively changing its style of teaching students.  There are free lectures and notes and articles that enable the students to practically learn their concepts and also prepare themselves for the challenges they would face in the exams.


After using a variety of content that is available on the website, the students will surely find themselves in a very comfortable spot to handle the tricky questions in the exams. Students become more organized and feel less pressure with the help of Vedanu’s expertly developed content.


Download the Price Discrimination – Types, Examples and Fun Facts PDF today and never miss an opportunity to excel.


Student’s Room Environment

It is quite understandable that our surroundings are a reflection of our inner qualities and vice versa. Taking note of this, students must always keep the environment healthy for studying.  It will enhance a student’s focus and develop consistency in the studying hours. Lighting of the room also plays a role sometimes when it comes to developing a healthy mood. Students are suggested to have not too bright and not too dim lighting.  It Has soft lighting which doesn’t keep you distracted and also ensures a comfortable reading experience for the students.  .  The study table should not be piled up with the old books that student’s o not need at all. It must be organized since organized surroundings lead to an organized mindset and well arranged time management. 


After reading the entire article a student must have garnered quality information that improves their quality of preparation and guides them towards better grades in the exams ahead.


Free Download Price Discrimination – Types, Examples and Fun Facts PDF on www.Vedantu.com

FAQs on Price Discrimination

1. What are the Conditions for Price Discrimination?

Two necessary conditions should be present for Price Discrimination to occur. These two conditions are:

  • The Seller should have control of the supply of the commodity and should be able to exercise monopolistic power.

  • There should be at least two sub-markets or more identified by the seller.

  • Other Conditions Include:

  • Price elasticity of the product should be different in different markets, which means if the seller increases the price, the buyer should not reduce the volume of purchase.

  • The seller should also make sure that buyers from the low-priced market are not selling the commodity to the buyer from the high-priced market.

2. Is Price Discrimination Illegal?

Price Discrimination is illegal only when it is done based on gender, religion, race, nationality, or if it violates price-fixing and antitrust laws. There is no definite law that states Price Discrimination is illegal, but if it is practised based on gender, race, religion or nationality, it becomes illegal and unethical as well. There are certain companies like Victoria’s secret, Men’s Wearhouse, Fraser and office depot that practice Price Discrimination. There are certain laws in India which state the prohibition of the use of the dominant position of a firm in the market and Price Discrimination as well.

3. How does Vedantu keep abreast with the modern trends in the education system?

Vedantu believes in staying ahead of its times. Any chance takes place in the world of the education system, Vedantu is quick to grasp and very versatile to adapt to them. The students are the first one to receive the benefits of any such change. To witness the same, one can go to the Vedantu’s website & find the latest articles and videos of the highly educated mentors on Vedantu. These educators are skilled and understand the needs of the modern day students and prepare them for the modern day challenges.

4. Where can one find suitable mentors for specific subjects?

When it comes to learning a subject, the role of a good mentor could never be neglected. A mentor is the one who stays in the highs and lows of the students. She is someone who understands the requirements of the students and evolves the student to the challenges of the present. On Vedantu, India can find its best educators. These educators are highly qualified and efficient to turn a student into a good competitor.

5.  How to find Price Discrimination?

Price Discrimination could be found on www.Vedantu.com . The article is available in the PDF format and could be accessed by the students on any device. Earlier, the location of the student used to play a major part in their access to the resources. Now, Vedantu has ensured that this no longer becomes the road block for the students in their journey to become a good human resource for the country.