Can you think of other examples of price discrimination besides those mentioned in the text? What about the way that airlines charge their business clients one price (noting that businesspeople often purchase fares just before they travel and that they have little flexibility in when and whether they travel) versus fares charged to vacationers (who often have alternative means of travel, choice over the time of travel, and the ability to purchase tickets in advance)? Can you explain the different fares charged by the airlines in terms of price discrimination?
Answer to relevant QuestionsWhat is the definition of a public good or service? Name some other public goods and services besides crime prevention. Can you explain why adult and child moviegoers are often charged different amounts when going to the movie theater, keeping in mind that both an adult and a child each takes up an entire seat? Ask your friends or family how the unemployment rate is calculated. Are they able to give the proper technical procedure? Do you believe in trickle-down philosophy? What do you think of the European approach to encouraging conservation in gasoline use by imposing very large excise taxes on gasoline? Do you think this would work in the United States? Do you think it makes a difference if ...
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