Student Discounts

Companies often offer discounts to students - from 10% to 50% off. Students will generally be more price sensitive. This is because they have lower disposable income and therefore a slight increase in price can make a good unaffordable. For adults, the profit maximization price is £ 9.99. But, at this price, student demand would be very low. If you lower the price to £ 4.99 for students, you can sell more to students, while still selling high to non-students. This way, the company gets the best of both worlds - high price for adults and increased sales to students. In this way, he can make more profit by offering different prices to different groups of consumers.

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