Which of the following is a necessary condition for price discrimination?
A) The seller must be able to divide the markets according to the different price elasticities of demand.
B) It must be difficult for one buyer to resell to another buyer.
C) Both a and b.
D) Neither a nor b.

Question

Quizplus · Accepted Answer

Price discrimination requires the ability to divide the market based on different price elasticities of demand (a) and the inability of buyers to resell to other buyers (b). If either of these conditions is not met, price discrimination is not feasible. Therefore, both a and b are necessary conditions for price discrimination.

Which of the Following Is a Necessary Condition for Price