People in the city of Maurus have a flatter demand curve for television sets than people in the city of Sienna.It can be concluded that a producer of television sets can price discriminate by charging a higher price in Maurus than in Sienna.

Question

Quizplus · Accepted Answer

The flatter demand curve in Maurus means that consumers are less sensitive to changes in price compared to consumers in Sienna. This gives the producer the ability to charge a higher price in Maurus without losing as many customers. Therefore, price discrimination is possible by charging higher prices in Maurus and lower prices in Sienna.

People in the City of Maurus Have a Flatter Demand