Which of the following is NOT a principle of pricediscrimination?

Question

Quizplus · Accepted Answer

CDB) To maximize profit, firms typically set higher prices in markets with more inelastic demand, not more elastic demand. This is because consumers in inelastic markets are less sensitive to price changes and are more likely to pay higher prices.C) This statement is actually a principle of price discrimination. Firms aim to set higher prices in markets with more inelastic demand to maximize profits, as consumers in these markets are less sensitive to price changes.D) Arbitrage, the practice of taking advantage of a price difference between two or more markets, can indeed make it difficult for a firm to maintain different prices in different markets. This can reduce the effectiveness and profit from price discrimination.

Which of the Following Is NOT a Principle of Pricediscrimination