For price discrimination to work, the person buying the product at a discount must face difficulty reselling the product.

Question

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Price discrimination involves charging different prices to different groups of consumers based on their willingness to pay. To make price discrimination effective, the seller must be able to prevent buyers who receive discounts from reselling the product to higher-paying customers. If buyers could easily resell the product at a higher price, the seller would not be able to charge different prices effectively. Therefore, the difficulty of reselling the product is a crucial condition for price discrimination to work.

For Price Discrimination to Work, the Person Buying the Product