When firms price-discriminate,people with _____ price elasticity of demand will pay _____ prices relative to those purchasing the same product who have a _____ price elasticity of demand.
A)higher;higher;lower
B)lower;lower;higher
C)lower;higher;higher
D)higher;the same;lower

Question

Quizplus · Accepted Answer

Firms charge higher prices to consumers with lower price elasticity of demand because they are less sensitive to price changes, while those with higher elasticity are charged lower prices.

When Firms Price-Discriminate,people with _____ Price Elasticity of Demand Will