Question 1) Price discrimination is often defended on the basis of equity (Charge less for the poor than the rich!). Is this the only rationale for price discrimination?
Question 2) If a market price is determined by a dominant price leader, what happens to the price (gets higher or lower) if the number of the followers increase? (First review on page 504.)
Question 3) What is transfer pricing? Give an example.
Question 4) Discuss the social welfare implications of price discrimination.