A price-discriminating monopoly firm will tend to charge a higher price to customers with a more inelastic demand than it does to customers with a more elastic demand.

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This is because customers with a more inelastic demand are less responsive to price changes and are willing to pay a higher price, whereas customers with a more elastic demand are highly responsive to price changes and will seek out alternative products if the price is too high. Therefore, the monopoly firm can charge a higher price to the inelastic demand customers without losing their business.

A Price-Discriminating Monopoly Firm Will Tend to Charge a Higher