In a price-discrimination setting,who pays the higher price for the same good?
A) Consumers with the most inelastic demand pay the highest price.
B) Consumers with the most elastic demand pay the highest price.
C) All consumers pay the same high price.
D) It is unknown which consumers would pay the higher price.
E) The consumers with the most inelastic supply pay the highest price.

Question

Quizplus · Accepted Answer

Consumers with the most inelastic demand are the ones who are less responsive to changes in price and are willing to pay more for the same good. Therefore, they pay the higher price in a price-discrimination setting.

In a Price-Discrimination Setting,who Pays the Higher Price for the Same