Amtrak sells discounted train tickets to students. This is an example of which kind of price discrimination?

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The question asks which kind of price discrimination is illustrated by Amtrak offering discounted tickets to students.
Option 1: Market segmentation. This choice aligns with the concept of price discrimination where a seller charges different prices to different groups based on characteristics like age, student status, or location. Offering student discounts targets a specific subgroup, making it a classic example of market segmentation.
Option 2: Hurdling method. This term is not a standard or widely used description of price discrimination strategies in economics. It does not appropriately describe offering student discounts, so this option is inaccurate.
Option 3: Bundling. Bundling involves selling multiple products or services together as a package at a single price. The student discount in isolation does not represent a bundle, so this option does not fit.
Option 4: Dynamic pricing. Dynamic pricing adjusts prices over time in response to demand, inventory, or other factors. While discounts can be used in dynamic pricing, the specific example of a student discount targets a fixed subgroup rather than varying price by time or demand, so this option is not the best characterization of the described strategy.

QAMO 2010-004 Fall 2025 Unit 5: Profit Maximization with Market Power Part 1 -- Short Problems

Amtrak sells discounted train tickets to students. This is an example of which kind of price discrimination?

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