Price Discrimination

Price Discrimination

Introduction

The education sector has been to follow an inflationary trend if we look at the recent past. Although most of the sectors have become unaffordable for the common public, there has been a consensus among many that the education sector has received prominent attention as being highly unaffordable for different parents.

Parents are struggling to address the educational needs of their parents since the educational costs and fees imposed by schools, colleges and universities have increased drastically. With the rising prices becoming a norm for society, there has been a huge struggle for parents since they do not have the means to pay for exorbitant fees for education of their children (Gold, 2012).

Discussion

The specific topic pertaining to economics within this article is of price discrimination. Price discrimination is discussed in the context of rich people that have more means and thus attend to the educational needs of their children comfortably. On the other hand, people belonging to lower and middle class have been known to suffer a great deal since they cannot meet the exorbitant financial educational needs of their children.

The lower class parents often have to sacrifice the educational needs of their children and thus the people belonging to upper class get a rapid advantage which translates into future success for their children (Hoxby, 2009).

As a result, we need to ascertain the mechanisms of market structure in order to delve deeper into the economic fallacies prevalent in the American society. The effects of price discrimination have been far reaching and thus this discrimination among the rich and poor in the context of education has shaped a huge dilemma for the policy makers. The humane aim of serving the society has one fundamental flaw. This flaw pertains to the aspect of production. When the producers ...