You face a demand curve of P = 3-Q for the few customers who buy your good. To exercise first-degree price discrimination, what would be the prices charged for the 1st and 2nd unit sold of the good? O $1,$3 O $2,$1 O $3,$1 O $1,$2

You face a demand curve of P = 3-Q for the few customers who buy your good. To exercise first-degree price discrimination, what would be the prices charged for the 1st and 2nd unit sold of the good? O $1,$3 O $2,$1 O $3,$1 O $1,$2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.

Question

You face a demand curve of P = 3-Q for the few customers who buy your good. To
exercise first-degree price discrimination, what would be the prices charged for the 1st
and 2nd unit sold of the good?
O $1,$3
O $2,$1
O $3,$1
O $1,$2

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