this is called price discrimination-selling products to different people and groups based on their willingness to pay.If some people really want the product, sell it to them at a high price. But sell it to indifferent people at a much lower price; otherwise, they will not buy. this only works if the firm can identify the price each individual would be willing to pay, and segregate the customers from one another so they cannot find out what the others are paying. Therefore, most firms adopt a fixed price for their goods, or a small number of prices for different versions of their products.