Charging different prices to different segments according to their price elasticity or sensitivity is known as price discrimination.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different segments based on their willingness to pay or price sensitivity. This strategy is used to maximize profits by charging higher prices to customers who are willing to pay more and lower prices to those who are less willing to pay. It is a common tactic used by businesses in various industries, including airlines, hotels, and retailers.

Charging Different Prices to Different Segments According to Their Price