In order for price discrimination to work,three conditions must be fulfilled.Which of the following is not one of those conditions?
A)The seller must be able to identify and separate different groups of buyers.
B)The different groups of buyers must have different elasticities of demand.
C)The product must be a necessity.
D)It must be impossible to resell the product.

Question

Quizplus · Accepted Answer

The product being a necessity is not a condition for price discrimination to work. The three conditions for price discrimination to work are: the seller must be able to identify and separate different groups of buyers, the different groups of buyers must have different elasticities of demand, and it must be impossible or difficult for buyers to resell the product.

In Order for Price Discrimination to Work,three Conditions Must Be