Note: This is post #50 in a weekly video series on basic microeconomics.
Price discrimination is common, says economist Tyler Cowen. Movie theaters charge seniors less money than they charge young adults and computer software companies sell to businesses and students at different rates, often offering discounts to students. These price differences reflect variations in the elasticity of demand for these different groups. When demand curves are different, it is more profitable to set different prices in different markets
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Previous in series: The costs and benefits of monopoly
