Price Discrimination: Is it Justified?

W3 price discrimination
Name
Professor
Institutional Affiliation
Course name & number
Due date
Movie theaters, airlines and other business engage in price discrimination to make as much revenue as they can from every customer. Companies do this to earn a surplus income by selling a service to customers at the maximum price they are willing to pay, especially when the demand is high. For instance, movie theaters charge more for evening tickets when most people are off work compared to during the day. Similarly, airlines price their tickets more during peak hours, such as on Sunday evenings instead of on Sunday morning when the demand is low. The companies also charge different prices to utilize the various price elasticities by incorporating a client’s willingness to pay. For instance, airline businesses offer different prices for people who ...