Imagine you and your friend go to an ice cream shop. You both buy a cone for $3, but your friend gets a special deal and only pays $2. That’s price discrimination, the shop gives some people a better deal than others, even though they’re buying the same thing.
Why does this happen? Sometimes stores know that some people are willing to pay more than others. If you really want that ice cream right now, you might be okay paying $3, but your friend might not mind waiting and getting it for less.
Examples
- A movie theater charges kids and seniors a lower price for tickets.
- You pay full price for an airline ticket, but your friend pays less because they booked in advance.
- An ice cream shop gives students a discount on their cones.
Ask a question
See also
- What Makes a Currency 'Strong'?
- How Did Ancient People Measure Wealth?
- What's the Difference Between Money and Wealth?
- Why Do People Prefer ‘Even’ Numbers in Business?
- What Causes a ‘Good’ Negotiation to Happen?
Discussion
Recent activity
Nothing here yet.