Summary: The text explores the concept of price discrimination, which involves a seller charging different prices to different customers based on their willingness to pay. Economists distinguish between three types of price discrimination: first-degree, second-degree, and third-degree. First-degree price discrimination, also known as perfect price discrimination, occurs when a seller charges each customer their maximum willingness to pay. Second-degree price discrimination involves offering different prices based on quantity or quality, and third-degree price discrimination involves setting different prices for different customer segments. Price discrimination allows sellers to capture more consumer surplus and increase their profits, but it can also lead to different levels of consumer welfare and potentially unfair treatment of certain customers. Overall, price discrimination is a common practice in various industries and can have both positive and negative implications for consumers and businesses alike.