Tutoring Service and Price Discrimination Context-Rich Problem
and is replicated here as part of the SERC Pedagogic Service.
Students are asked to apply their knowledge in price discrimination and elasticity to advise on an optimal pricing scheme for a service in a real-life scenario.
Context for Use
This activity can be used in a college level Principles of Microeconomics class of any size. You can choose to have the students work in pairs for a more engaged discussion, individually as an in-class assignment or as a part of an exam, or outside of class as homework. If conducted in class, roughly 15-20 minutes will be needed.
Description and Teaching Materials
Please keep your response to no more than one and no less than half a page.
Price Discrimination Context-Rich Problem (Microsoft Word 2007 (.docx) 12kB Mar26 12)
Teaching Notes and Tips
- The activity is typically given after the concept is studied in class, either at the end of a chapter or content module or at the end of the term to bring different concepts together.
- It might be necessary to remind the students, especially if it is the first time students are exposed to this type of problem, that the audience be very clear in the answer. The response should not be written as an exam or homework essay, but as if they are actually talking to the person in the scenario.
- The problem can check for students' ability to transfer knowledge by asking them to answer the question once without using economic jargon, and another time, with specific economic concepts and graphical illustration or calculation (provided that the numbers are given in the problem), to see that students are able to make the connection between theoretical understanding and practical application in the real world.
- Students should be able to not only respond to the problem but defend their answer with logic and concrete economic reasoning.
- The activity can be expanded on a deeper level by encouraging students to combine and incorporate ideas from different points of the course.