A price-discriminating monopolist will follow a system where
A)buyers with inelastic demand are charged higher prices than buyers with elastic demand.
B)buyers with inelastic demand are charged lower prices than buyers with elastic demand.
C)all buyers are charged the same price regardless of their elasticity of demand.
D)the price of the product is held the same even if the demand changes.

Question

Quizplus · Accepted Answer

A price-discriminating monopolist charges higher prices to buyers with inelastic demand because they are willing to pay more for the product, as their quantity demanded does not decrease significantly with an increase in price.

A Price-Discriminating Monopolist Will Follow a System Where