When companies engage in price discrimination, they charge different prices to?

Price discrimination involves charging different prices to different groups of customers for the same good or service, based on their willingness or ability to pay. This practice allows companies to maximize their revenue by capturing more consumer surplus from various segments of the market.

When considering the correct answer, pricing strategies can vary based on the characteristics of different customer types. Companies might charge lower prices to students or seniors, for instance, while charging higher prices to business travelers or tourists, based on the perceived value or demand from these different types. This segmentation allows businesses to tailor their offerings and maximize profitability by targeting specific demographics that are willing to pay differing amounts.

In contrast, charging different prices based on geographic location or the same customer shows a lack of the essential element of customer type differentiation. It does not emphasize the varied reactions or purchasing behaviors of distinct groups within the market, which is the core of effective price discrimination. Thus, the best answer clearly reflects the strategy of varying prices according to different customer types and their unique purchasing power or behaviors.