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Delhi Jal Board supplies water to …

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Delhi Jal Board supplies water to different consumers like households , farmers, shopkeepers at different rates. What is such policy known as? How is it possible for Delhi Jal Board to adopt such a policy?

Posted by Devasri Sri 7 years ago

CBSE > Class 11 > Economics

1 answers

Chesta Pawan Manchanda 7 years ago

It is known as price discrimination. In this policy a firm provides same product to different consumers at different prices. Delhi jal board can adopt this policy by excepting two conditions . First one is firm must be able to identify market segments by their price elasticity of demand. Second is firm must be able to enforce the scheme. Example: airlines it provides air tickets at different price to different people like business men who have perfectly inelastic demand.

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