Interview
Grade 7 IB Microeconomics IA 2020 Sample
- Course
- Institution
- Book
The microeconomics IA that achieved a 7 when marked by assessors. Follow the same structure and you'll be guaranteed higher marks.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Full HL Economics Summary (ib)
-
IB economics HL study guide
-
IB International Trade Economics HL Grade 7 IA
1 review
By: johnnylebl • 3 year ago
Seller
Follow
perinaili63
Reviews received
Content preview
The personal care industry usually engages in gender-based discrimination, with womenpaying more than men. Price discrimination occurs when producers sell the same product to
different consumers at different prices, and it takes place when the producer has price-
setting ability. This specific case pertains to third-degree price discrimination. Here,
consumers are identified in different market segments, and a separate price is charged in
each segment according to its elasticity, which is how much the demand changes when the
price of a product changes. When demand is inelastic, the change in demand is less than
the change in price, and when demand is elastic, the change in demand is greater than the
change in price. In this case, demand for products is much higher and more inelastic for
female consumers, and producers are able to charge more as this does not affect demand.
For male consumers, however, demand for products is lower and more elastic, so producers
have to set their prices lower to maintain the level of demand.
Graph 1. Price elasticity of demand in different markets, taking the price of facial
moisturizers as an example.
In this graph,the green line, D, represents demand for personal care products, which is the
amount of people who are willing and able to purchase it. The purple line is MR, which
represents marginal revenue, the additional revenue gained from selling one extra unit. The
red line, MC, represents marginal cost that is the extra cost to produce one extra unit.
Demand goes up as price goes down because more people who are willing and able to
purchase the product as it doesn’t cost them as much. Given that demand is equal to
average revenue, marginal revenue is twice as steeply sloping as the demand curve.
Marginal cost is constant because there is the same additional cost to produce the product
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller perinaili63. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.10. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50843 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now