Question: QUESTION 3 (a) What is Price Discrimination? Give specific example 4 marks (b) Explain three (3) requirements for price discrimination to be successful. 6 marks

QUESTION 3 (a) What is Price Discrimination? Give specific example 4 marks (b) Explain three (3) requirements for price discrimination to be successful. 6 marks () An International Airline in Ghana, Emirates, estimates that the price elasticity of demand for business travelers who travel on weekdays is -3, while that for vacation travelers who travel on weekends is -5. If the aim of the airline is to maximize profit what pricing strategy will you recommend to the airline? 10 marks [20 marks]

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