A firm will adjust prices so that customers with more _______ demand pay ________ prices than those customers with _______ elastic demand.
A) inelastic; lower; less
B) elastic; lower; less
C) elastic; the same; more
D) A and B are true.

Question

Quizplus · Accepted Answer

Customers with more elastic demand are more sensitive to price changes and will pay lower prices than those with less elastic (inelastic) demand, who are less sensitive to price changes.

A Firm Will Adjust Prices So That Customers with More