Sellers can gain profits from price discrimination because

Question

Quizplus · Accepted Answer

Price discrimination allows sellers to charge different prices to different customers based on their willingness to pay. This can increase revenues because some customers will be willing to pay a higher price for the same good or service. By charging them a higher price, the seller can capture more of their willingness to pay, resulting in higher profits. Total expenses may or may not be lower with price discrimination, but it is the potential for increased revenues that is the primary driver for using this pricing strategy.

Sellers Can Gain Profits from Price Discrimination Because