Definition of Price Discrimination
It’s a method where you price the exact items differently for each customer. Typically, they price it at the highest point that they will pay.
Description of Price Discrimination
Here, typically those in the upper class get charged more whereas those with a smaller income can pay less for an item.
Advantages of Price Discrimination
It can help raise profits allowing companies to stay in business. Additionally, they can gain the attention of more shoppers by havings smaller prices in a peak time. Also, those with smaller incomes will benefit, thus gaining more customers.
Disadvantages of Price Discrimination
You’ll have unhappy customers that won’t be willing to pay, more thus you’ll lose both profit and customers.