If Big Fitness, a large workout facility, offers a discounted membership to college students, this is an example of ________.
A.
third−degree
price discrimination
B.
zero−degree
price discrimination
C.
first−degree
price discrimination
D.
second−degree
price discrimination
If we talk in simple terms then 1st degree price discrimination or perfect price discrimination occurs when the company charges maximum possible price from each consumer
it also causes zero consumer surplus
second degree price discrimination is occurs with quantity
third degree price discrimination related with the demographics like senior ,students, military Personal etc
Now from the given question since big fitness offers discount to a special segment of customer that is student so it will come under third degree price discrimination.
answer is option A
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