Question about microeconomics?

Question

1.What is the relationship between the steepness of the demand curve and market power? Please explain.

2. What is price discrimination?

3. Why would a firm practice prime discrimination?

Answer 1

price discrimination occurs when firms target specific groups of people to see how this will react to the value or demand of a good.  example, supermarkets use coupons to target consumers. often supermarkets use reward cards; this allows them to track what consumers are purchasing and at which prices they will buy the goods.  now they can advertise accordingly. other example, hotels know they can price discriminate and charge you 200% the price you would find a a convenient store