Economic Issues and Policy 5th Edition by Jacqueline Murray Brux

Exercise 7

Can you think of other examples of price discrimination besides those mentioned in the text What about the way that airlines charge their business clients one price (noting that businesspeople often purchase fares just before they travel and that they have little flexibility in when and whether they travel) versus fares charged to vacationers (who often have alternative means of travel, choice over the time of travel, and the ability to purchase tickets in advance) Can you explain the different fares charged by the airlines in terms of price discrimination