For price discrimination via coupons to be successful, it must be TRUE that:
A) shoppers who use coupons have more elastic demand than shoppers who do not.
B) shoppers who use coupons have more inelastic demand than shoppers who do not.
C) there is a negative correlation between coupon use and the consumer's willingness to shop for price.
D) firms can directly identify which consumers are the most price sensitive before purchase of the good.

Question

Quizplus · Accepted Answer

Price discrimination via coupons is successful when shoppers who use coupons have more elastic demand, meaning they are more sensitive to price changes and more likely to respond to discounts, compared to those who do not use coupons. This allows firms to sell the same product at different prices to different groups based on their price sensitivity.

For Price Discrimination Via Coupons to Be Successful, It Must