Price discrimination is based on differences in ________ among groups of consumers and the differences in ________ that will result.
A) cross elasticities of demand; revenues
B) price elasticities of demand; profits
C) quantities supplied; marginal revenues
D) income elasticities of demand; marginal costs

Question

Quizplus · Accepted Answer

Price discrimination strategies are based on the differences in price elasticities of demand among different groups of customers. The goal is to be able to charge higher prices to customers who are less price sensitive, and lower prices to customers who are more price sensitive. This can result in increased profits for the firm.

Price Discrimination Is Based on Differences in ________ Among Groups