In third- degree price discrimination, consumer groups with the largest price elasticity of demand will pay the lowest price compared to the consumer groups with smaller price elasticities.

Question

Quizplus · Accepted Answer

Third-degree price discrimination involves charging different prices to different consumer groups based on their price elasticity of demand. The group with the most elastic demand will be charged a lower price, while the group with less elastic demand will be charged a higher price. Therefore, the statement in the question is true.

In Third- Degree Price Discrimination, Consumer Groups with the Largest