Why Do Companies Charge Different Prices for the Same Product?

Sometimes, companies charge different prices for the same product because they know some people are willing to pay more than others. Imagine you're at a toy store: one kid buys a video game for $60, and another buys it for just $30, both got the same game, but paid different amounts. The store knows that some kids have more money or want the game right now, so they charge them more.

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Examples

  1. A toy store sells the same action figure for $10 to one kid and $20 to another.
  2. You buy a coffee from your local café, while someone else buys it for twice the price at the same time.
  3. A phone company charges you more for the same plan because you’re not a student.

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