Price discrimination

Start with the introductory note

The note on Price discrimination introduces the idea of charging different groups of consumers different prices for the same good or service. Use it to get a starting point before moving to the mind maps. As you read, consider who is being charged and what is being sold.

The Price Discrimination mind map then sets out different degrees of price discrimination. It includes a description of perfect price discrimination, where each unit is sold at the maximum price, and refers to consumer surplus. You can use the map to organize the terms introduced in the note.

Explore conditions and effects

Another mind map focuses on conditions needed for price discrimination, including monopoly power, elasticity of demand and separation of the market. Look at how these conditions relate to a firm's ability to set prices.

A separate mind map considers whether price discrimination is good for producers and bad for consumers. Read it alongside the conditions map to move from how price discrimination can take place to questions about its effects. The map titled Monopolies provides further context on monopoly revenue and demand.

Use the quizzes with the maps

The quiz on conditions for price discrimination includes a statement about the seller being a price searcher. Try that question after studying the conditions map, then return to the map to check the relevant terms. Other quizzes include questions on natural monopolies, barriers to entry and a linear city model.

These resources connect Price discrimination to the wider Market Structures unit in Economics. The maps offer concepts to study, while the quizzes give you questions to work through. Pick a map and use it alongside a quiz as you study.