|Question||Consider each of the following examples in which a firm sells the same product to different customers at different prices. Identify in each case whether price discrimination is likely to be taking place. If there is unlikely to be price discrimination occurring, what explains the different prices?
a. Weekend airline fares that are less than weekday fares
b. Business-class airline fares that are 50 percent higher than economy-class fares. (Recognize that two business-class seats take the same space inside the plane as three economy-class seats.)
c. Discounts on furniture negotiated from the “suggested retail price” for which sales personnel are authorized to bargain and to get as much in each transaction as the customer is prepared to pay.
d. Higher tuition for law students than for graduate students in economics.