What is Third Degree Price Discrimination?

-This is when Firms dish Different Prices for the Same Product to Different Segments of the Market (Market Segmentation GCSE BUSINESS!!) -These can be: Age, Times or Places. -Firms have identified 2 Groups (Children and Adults) with Different Price Elasticities of Demand -Maxing Profit, the Firm will charge a Higher Price to those with more Inelastic (Adults) than those who are more Elastic (Children) -This creates even more Supernormal Profit, had the Firm set the Same Price for Both Groups.