{
  "id": "price-discrimination",
  "name": "Third-degree price discrimination",
  "unit": "micro",
  "unitName": "Unit 2 · Microeconomics",
  "topic": "Imperfect competition (HL)",
  "hl": true,
  "description": "A firm with market power separates customers into markets with different price elasticities and sets MR = MC in each: the higher price is charged in the market with the more inelastic demand.",
  "keywords": [
    "price discrimination",
    "third degree",
    "separate markets",
    "price elasticity of demand",
    "MR = MC",
    "market power"
  ],
  "schemaUrl": "https://graphs.lectere.com/api/v1/templates/price-discrimination",
  "previewUrl": "https://graphs.lectere.com/thumbs/price-discrimination.svg",
  "editorUrl": "https://graphs.lectere.com/graph/price-discrimination/",
  "params": [
    {
      "key": "shade",
      "label": "Shade profit in each market",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "combined",
      "label": "Add the combined market panel",
      "default": false,
      "type": "boolean"
    },
    {
      "key": "mc",
      "label": "Marginal cost",
      "default": 3,
      "group": "Shape",
      "type": "number",
      "min": 1.5,
      "max": 4.5,
      "step": 0.1
    }
  ],
  "defaults": {
    "shade": true,
    "combined": false,
    "mc": 3
  },
  "panels": [
    {
      "id": "a",
      "title": "Market A (inelastic demand)",
      "xLabel": "Quantity",
      "yLabel": "Price, costs",
      "xRange": [
        0,
        10
      ],
      "yRange": [
        0,
        10
      ],
      "axisKeys": {
        "x": "a:x",
        "y": "a:y"
      }
    },
    {
      "id": "b",
      "title": "Market B (elastic demand)",
      "xLabel": "Quantity",
      "yLabel": "Price, costs",
      "xRange": [
        0,
        10
      ],
      "yRange": [
        0,
        10
      ],
      "axisKeys": {
        "x": "b:x",
        "y": "b:y"
      }
    }
  ],
  "labels": [
    {
      "key": "a:title",
      "default": "Market A (inelastic demand)",
      "hint": "Panel title",
      "panel": "a"
    },
    {
      "key": "a:y",
      "default": "Price, costs",
      "hint": "Vertical axis",
      "panel": "a"
    },
    {
      "key": "a:x",
      "default": "Quantity",
      "hint": "Horizontal axis",
      "panel": "a"
    },
    {
      "key": "a.ar",
      "default": "D_A = AR_A",
      "hint": "Curve",
      "panel": "a"
    },
    {
      "key": "a.mr",
      "default": "MR_A",
      "hint": "Curve",
      "panel": "a"
    },
    {
      "key": "a.mc",
      "default": "MC = AC",
      "hint": "Curve",
      "panel": "a"
    },
    {
      "key": "a.e:y",
      "default": "P_A",
      "hint": "Vertical-axis value",
      "panel": "a"
    },
    {
      "key": "a.e:x",
      "default": "Q_A",
      "hint": "Horizontal-axis value",
      "panel": "a"
    },
    {
      "key": "b:title",
      "default": "Market B (elastic demand)",
      "hint": "Panel title",
      "panel": "b"
    },
    {
      "key": "b:y",
      "default": "Price, costs",
      "hint": "Vertical axis",
      "panel": "b"
    },
    {
      "key": "b:x",
      "default": "Quantity",
      "hint": "Horizontal axis",
      "panel": "b"
    },
    {
      "key": "b.ar",
      "default": "D_B = AR_B",
      "hint": "Curve",
      "panel": "b"
    },
    {
      "key": "b.mr",
      "default": "MR_B",
      "hint": "Curve",
      "panel": "b"
    },
    {
      "key": "b.mc",
      "default": "MC = AC",
      "hint": "Curve",
      "panel": "b"
    },
    {
      "key": "b.e:y",
      "default": "P_B",
      "hint": "Vertical-axis value",
      "panel": "b"
    },
    {
      "key": "b.e:x",
      "default": "Q_B",
      "hint": "Horizontal-axis value",
      "panel": "b"
    }
  ],
  "elements": [
    {
      "key": "a.profit",
      "kind": "area"
    },
    {
      "key": "a.ar",
      "kind": "curve",
      "label": "D_A = AR_A"
    },
    {
      "key": "a.mr",
      "kind": "curve",
      "label": "MR_A"
    },
    {
      "key": "a.mc",
      "kind": "curve",
      "label": "MC = AC"
    },
    {
      "key": "a.mcmr",
      "kind": "point"
    },
    {
      "key": "a.e",
      "kind": "point"
    },
    {
      "key": "b.profit",
      "kind": "area"
    },
    {
      "key": "b.ar",
      "kind": "curve",
      "label": "D_B = AR_B"
    },
    {
      "key": "b.mr",
      "kind": "curve",
      "label": "MR_B"
    },
    {
      "key": "b.mc",
      "kind": "curve",
      "label": "MC = AC"
    },
    {
      "key": "b.mcmr",
      "kind": "point"
    },
    {
      "key": "b.e",
      "kind": "point"
    }
  ],
  "stats": null,
  "example": {
    "template": "price-discrimination",
    "params": {
      "shade": true,
      "combined": false,
      "mc": 3
    }
  }
}