Price discrimination can occur only if the elasticities of demand are the same across different markets.

Question

Quizplus · Accepted Answer

Price discrimination can occur even if the elasticities of demand are not the same across different markets. In fact, price discrimination is often used as a way to maximize profits by charging higher prices to customers with lower price elasticity of demand and lower prices to customers with higher price elasticity of demand.

Price Discrimination Can Occur Only If the Elasticities of Demand