Group Price Discrimination
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Group Price Discrimination: This section describes the case of third-degree price discrimination and is one for which students will be able to identify many examples from their own experience. It is worth taking the time to cover the model carefully (graphically, algebraically or both, depending on the nature of your course). The spot that seems to trip students up the most is the combination of two different demand curves to solve for the case without price discrimination. Reminding them that adding demand curves requires ‘horizontal’ addition (adding quantities together) is helpful.

