Which of the following is not an example of price...

Which of the following is NOT an example of price discrimination? Group of answer choices A hairdresser charging female more than male for a similar haircut A plumber who charges a higher hourly rate when he works in a high-priced mansion A lawyer doing pro-bono (free) work for charity groups A plane ticket on a long-distance international flight costs more than a ticket on a domestic short-distance flight

Transcript

00:01 So what is price discrimination, right? price discrimination is charging different groups, right? and this could be groups in terms of any characteristic in terms of their income, in terms of their gender, in terms of their age, in terms of what they like, different prices for the same product, right? this is tricky because if you put the same product in the store at two different prices, you would expect that.

00:34 That everyone will buy where it's cheaper.

00:36 So you need to have some way to sort of force these people or to block them from buying the good at the cheaper price.

00:44 If you're going to charge two prices, one price is going to be higher.

00:47 And that means you need some way to block the people.

00:51 You want to pay the who you think should pay the higher price from accessing the product at a lower price, which can be very difficult.

00:57 Right.

00:58 So let's walk through the situations we've got here.

01:00 A, um, all.

01:03 So let's come back to this.

01:05 I can't comment on all until we've looked at the rest.

01:09 Zoo tickets.

01:13 Cheaper for kids.

01:17 Kids.

01:18 This is absolutely price discrimination, and it is discrimination based on age.

01:22 Now, of course, price discrimination doesn't mean that we hate kids here or that we love kids and hate adults.

01:28 Price discrimination only means that we are being able to distinguish, right? discrimination and the idea of having discriminating judgment.

01:35 We're able to distinguish between two groups, right? right, and charge them different prices based on some characteristics.

01:42 So here that characteristic is age, and we prevent the adult from accessing the kid because we look at the adult's id or something if they try to claim a cheap ticket, right? c, phone calls, night versus day.

02:03 Now, this is very tricky.

02:08 Are these the same product? possibly different product? for example, electricity is often has a different price in the evening than in the day.

02:26 And the idea is that because it's actually a different product...

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