Certain conditions are necessary for price discrimination. They include:
• Monopoly (i.e. consumers have no other choice). • Separate and distinct markets. • Different groups willing to pay different prices. • A lack of consumer knowledge or consumer indifference.
Markets and me A
Go to page 212 of your Activities and Accounts Book to record the markets you buy products from.
DEMAND AND SUPPLY
The price consumers are charged for goods and services in a market depends on demand and supply.
• Demand is the quantity of a product that consumers are prepared to buy at different prices.
• Supply is the quantity of a product that suppliers are prepared to sell at different prices.
DEMAND i
Demand is the quantity of a product that consumers are prepared to buy at different prices.
The law of demand states that as the price of a good or service increases, the quantity demanded will decrease, and vice versa.
