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T his question appeared in the ‘Business economics and the distribution of income’ module within the AQA specification. In the examination candidates were advised to spend an hour tackling the question, which was one out of a choice of three.
Price discrimination is a topic that appears in the economics specifications for all the major examination boards, and it provides a good opportunity to show the ability to apply economic analysis in a particular context. Price discrimination is quite a common phenomenon, and most people will have come across examples of it in action. Train tickets are a classic example of it.
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