When Pan United Airlines gives a $400 fare discount to persons with student IDs,they are practicing:

Question

Quizplus · Accepted Answer

Pan United Airlines is offering a discount to a specific group of customers (students) based on their willingness to pay, which is a characteristic of third-degree price discrimination. In this case, the airline is segmenting its market and charging different prices to different groups based on their price elasticity of demand.

When Pan United Airlines Gives a $400 Fare Discount to Persons