A firm that can price-discriminate should adjust prices so that customers with _____ demand pay _____ prices than (as) those with _____ demand.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different customers based on their willingness to pay. Customers with price-elastic demand are more sensitive to price changes, so they should be charged lower prices to encourage them to buy. Conversely, customers with price-inelastic demand are less sensitive to price changes and can be charged higher prices.

A Firm That Can Price-Discriminate Should Adjust Prices So That