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Suppose the Price Elasticity of Demand for Coffee at the Coffee

Question 197

Multiple Choice

Suppose the price elasticity of demand for coffee at the Coffee Barn equals 1.71 for women and 0.55 for men.A successful price discrimination strategy would lead to _____ prices for men and _____ prices for women _____.


A) lower;lower;in any circumstances
B) lower;higher;in any circumstances
C) lower;higher;as long as men can't resell drinks to women
D) higher;lower;as long as women can't resell drinks to men

Correct Answer:

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