New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Topic 11- FINAL

by: John Om

Topic 11- FINAL ECON 102

John Om
Penn State
GPA 3.0

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

all the notes covered from topic 11 including graphs
Introductory Microeconomic Analysis and Policy
Wayne Geerling
75 ?




Popular in Introductory Microeconomic Analysis and Policy

Popular in Economcs

This 3 page Bundle was uploaded by John Om on Monday April 25, 2016. The Bundle belongs to ECON 102 at Pennsylvania State University taught by Wayne Geerling in Winter 2016. Since its upload, it has received 8 views. For similar materials see Introductory Microeconomic Analysis and Policy in Economcs at Pennsylvania State University.


Reviews for Topic 11- FINAL


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 04/25/16
Topic 11: Price Discrimination Price Discrimination ­ Price discrimination o A firm sells at the same good to different consumers at different prices for reasons NOT  associated with cost differences ­ Discrimination: negative connotation Examples of Price Discrimination ­ College tuition ­ Airline tickets ­ Movie matinee ­ Selected “discounts” o Student o Senior citizen o Military o Employee Conditions of Price Discrimination ­ Two conditions must be met for price discrimination to be successful o 1. Firm must be able to distinguish groups of buyers with different price elasticities of  demand (different willingness to pay) o Firm must prevent resale of the good or service (arbitrage) o Distinguishing Groups of Buyers ­ General rule o Charge higher price to relatively inelastic consumers o Charge lower price to relative elastic consumers ­ How to find these people? o Self­selection Perfect Price Discrimination ­ Perfect Price Discrimination o Firms charges a unique price to each consumer equal to their maximum willingness to  pay o Reservation price = maximum willingness to pay o If firm is able to do this, there will be NO consumer surplus ­ Hard to implement in real life. Why? Graph Summary ­ Compare a single price firm to a price discrimination firm.. ­ With price discrimination: o The most inelastic people pay a higher price o A lower price is also charged which will attract more elastic consumers into market o The overall amount of sales increases o Overall welfare increases & deadweight loss is decreases Welfare effects of Price Discrimination ­ Producers o Have higher Producer Surplus o Firms makes a higher profit ­ Consumers o Benefit from more units being offered for sale & more trading occurs o In certain cases have higher overall Consumer Surplus ­ Overall o Welfare increases and DWL decreases Profit = Marginal Cost A: Consumer Surplus B: Producer Surplus C: Dead Weight Lose Price Discrimination at the Movies ­ Why do students get discounts for movie tickets but not for popcorn? o Firm waits until you get in


Buy Material

Are you sure you want to buy this material for

75 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.