A certain amusement park offers a 50 percent discount to kids between the ages of 8 and 14 years.This is an example of ________.

Question

Quizplus · Accepted Answer

This is an example of third-degree price discrimination, where the park charges different prices to different age groups. By offering a discount only to kids between the ages of 8 and 14 years, the park is able to segment the market and charge a higher price to adults and younger children who do not qualify for the discount. This allows the park to capture more consumer surplus and increase profits.

A Certain Amusement Park Offers a 50 Percent Discount to Kids