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Third Degree Price Discrimination
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Price Discrimination Model
Price Elasticity of Demand (Curve 1)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
Price Elasticity of Demand (Curve 2)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
Fixed Costs (£)
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
Variable Costs per Unit - Curve 1 (£)
0
1
2
3
4
5
6
7
8
9
10
Variable Costs per Unit - Curve 2 (£)
0
1
2
3
4
5
6
7
8
9
10
