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Economics is a study of social science where one studies to understand all process that rules production, consumption and distribution of all services and goods in any economy. There are many things that you will be learning in economics. There is also a part which is known as microeconomics.
Let our team First degree price discrimination assignment help explain to you what Microeconomics is and the meaning of first degree price discrimination
It is a branch of economics that deals with individual preferences and decisions that has an effect on the market and its demand and supply systems. This branch of study is currently quite influential and plays a dominant part while studying economics.
It is basically a situation when a business charges a different price to different kinds of customer or consumer groups for the same service they provide. The two dominant reasons for such situations are due to the presence of differences in the price of demand elasticity and another for prevention from resale and switching of consumers. Under this there are many types too. But here we will just put a light on First degree of price discrimination.
The First degree of price discrimination is bound to occur when any seller has the ability to understand the exact amount that a customer is willing to pay for each goods and services that he offers. Also all the surplus of a consumer is directed towards a seller. It is known to be as optimal pricing.
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