AP MicroeconomicsMarket Structures
Price Discrimination
Price discrimination is the practice of charging different prices to different consumers for the same product based on their willingness to pay.
To engage in price discrimination, a firm must have market power, be able to identify different consumer groups, and prevent resale between groups. It increases profits by capturing more consumer surplus.
Interactive graph
Monopoly →
Drag the curves and see it for yourself.
Study module
Monopoly →
Full lesson, practice questions, and flashcards.