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  • 1. Define price discrimination.
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  • 2. Describe the difference between Jose\'s and Kelly\'s need to travel to Seattle.
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  • 3. Is it likely that Jose would pay $1,000 for a plane ticket to Seattle?
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  • 4. Why?
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  • 5. Why is Kelly willing to pay $1,000 for plane ticket to Seattle?
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  • 6. If you buy a $200 ticket from Airline X on the Internet, what keeps you from reselling it to Kelly for $500?
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  • 7. Is price discrimination a good business practice?
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