CAIE A-Level Economics 7.8.3 Price discrimination
Practise recognising price discrimination, its conditions and its effects on firms, consumers and society in market examples.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- A2
Exam points
- apply conditions: separate markets, different PED and no resale between consumer groups
- identify first, second or third degree discrimination in airline, bus or retail pricing
- assess producer gains against consumer surplus, access effects and welfare consequences
7.8.3—Price discrimination question 1
[Maximum number: 1]
A bus company has a monopoly and specialises in long-distance travel. It initially sells its tickets to customers one month in advance of the journey. As the departure date approaches, the price of a ticket increases.
Which kind of pricing policy does the bus company operate?
A
minimum pricing
B
predatory pricing
C
price discrimination
D
price leadership
C
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