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Price Discrimination

question 1 of 3 course: Bachelor of Science in Health Services Management and Planning
question 1 of 3 course: Bachelor of Science in Health Services Management and Planning

Q: Price discrimination occurs when firms charge different prices to different customers for the same product.

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Tax incidence analysis examines who ultimately bears the economic burden of a tax, which depends on the relative elasticities of supply and demand. The burden often falls more heavily on the side of the market that is less elastic (less responsive to price changes).

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Did You Know?

Tax incidence analysis examines who ultimately bears the economic burden of a tax, which depends on the relative elasticities of supply and demand. The burden often falls more heavily on the side of the market that is less elastic (less responsive to price changes).

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