“The form of price discrimination, which is based on the volume of consumer purchases, is very common and is known as second degree price discrimination”. Explain second degree price discrimination with the help of an example and diagram.

Second-degree price discrimination is a pricing strategy where a firm charges different prices based on the quantity or volume of goods or services purchased by the consumer. Unlike first-degree price discrimination (where each unit is sold at the maximum price the consumer is willing to pay), second-degree price discrimination involves offering quantity discounts or price schedules to encourage consumers to buy more.

Explanation:

Imagine a movie theater employing second-degree price discrimination. The theater offers different ticket prices based on the volume of tickets purchased per transaction. Here's how it works:

1. Regular Price: The theater sets a regular price per ticket, say $10, for customers buying only one or two tickets. This price caters to occasional moviegoers who are not inclined to buy in bulk.

2. Discounted Price: For customers willing to buy in bulk, say a group of friends or a family, the theater offers a discounted price per ticket. ________ ___ ________ ____ _______ ________.
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