Price-discriminating firms charge higher prices to those who

Question

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Price-discriminating firms charge higher prices to those who have lower price elasticities of demand. This means that the firm charges more to consumers who are less responsive to changes in price, because these consumers are less likely to switch to a substitute product or reduce their consumption in response to a price increase. This allows the firm to capture more of the consumer surplus and maximize profits. High income or availability of substitutes may not necessarily affect the price elasticity of demand.

Price-Discriminating Firms Charge Higher Prices to Those Who