The charging of different prices to different group of buyers for the same goods or services is called

Answer Details

The charging of different prices to different groups of buyers for the same goods or services is called price discrimination. Price discrimination is when a seller charges different prices to different groups of customers for the same product or service. This can be based on various factors, such as location, age, income, or quantity purchased. The goal of price discrimination is to maximize profits by charging each customer the highest price they are willing to pay. For example, a movie theater might charge seniors a lower ticket price than adults, or an airline might charge more for a last-minute ticket than for one purchased well in advance. Price discrimination can occur in various types of markets, including monopolies, oligopolies, and monopolistic competition. It is often viewed as a way for sellers to increase their profits, but it can also be seen as a way to make goods or services more affordable for certain groups of consumers.