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Describe and explain a real-life instance where a monopolist price discriminated. Is this legal? Why or...

Describe and explain a real-life instance where a monopolist price discriminated. Is this legal? Why or why not? When price of a good or service changes, demand also changes. Is this true? Explain.Do consumers make rational decisions? Why or why not? What is perfect competition? Give examples of industries with perfect competition.

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Answer #1

Train is a monopolist and when train department give special discount to senior citizen or student then this is an example of third degrre price discrimination. This is legal.

When price of a good changes then quantity demanded changes but quantity demand remians same. Quantity demand changes only when other factor changes the demand keeping price constant. When demand changes due to change in price then quantity demanded changes, not quantity demand.

No, consumer sometimes dont make rational decision because of incomplete or assymetric information.

Perfect competition is an industry with large number of buyer and sellers selling homogenous product and each sellers receives normal profit in long run. There is free entry and exit from an industry.

Agriculture market are approximately perfect competiton. However in real world perfect competition doesnot exist

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