Answer:
Generally, it's due to the fact that producers do supply more and consumers tend to purchase at costs suitable for their purchase.
Explanation:
We have three forms of price discrimination, in Microeconomic Theory.
First form is where we have each unit being sold at a varying price (one-to-one sales/market). This is generally rare (in some cases, it's due to club memberships' fee, for instance) often termed "perfect price discrimination".
Second form is when the seller distinguish their products to enable consumers determine where they suit, while third form is as a result of non-differentiation of the product with the consumers being grouped to categories.
In these two scenario, through a way, consumers will determine what fits their needs and isn't going to cost a lot, while the company (seller) will extend its network with ease to a higher demand, indicating while prices discrimination increases the number of customers.
Take it this way: it is good to have individuals purchase a can of malt for $2 and not purchasing the $5 two-liter malt than totally not purchasing the $5 two-liter malt.
Answer:
Price discrimination helps the producers to make more profit. This is true because the Producers charge consumers as high or low as they want depending on if the consumers are able to pay the price.
In this type of.m scenario there is no fixed price.
The Rich consumers are usually charged more than the poor ones.
Price discrimination helps the poor ones because they are usually charged less.
