Price-discriminating firms charge higher prices to those who

Question

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Price-discriminating firms charge higher prices to those who have lower price elasticities of demand, meaning they are less sensitive to changes in price and more willing to pay a higher price for the product. Higher incomes (option A) may be a factor in determining price discrimination, but it is not always the case as there are low-income customers with inelastic demand. Having many substitutes (option C) would make a customer more price-sensitive and less likely to accept a higher price. Wanting the product less (option D) does not necessarily mean a customer is less willing to pay a higher price, as they may still value the product's benefits.

Price-Discriminating Firms Charge Higher Prices to Those Who