(Last Word) Based on the concept of price elasticity of demand, which of the following cases is most likely to occur?
A)golf courses charging higher prices for golf during the week than on weekends
B)movie theaters charging higher prices for senior citizens
C)colleges charging lower tuition for low-income students
D)airlines charging lower fares for business travelers

Question

Quizplus · Accepted Answer

Price elasticity of demand refers to how sensitive the quantity demanded is to a change in price. Colleges charging lower tuition for low-income students is an example of price discrimination based on elasticity, as low-income students are likely more price-sensitive.

(Last Word) Based on the Concept of Price Elasticity of Demand