When setting prices for different groups of customers, a manager should charge higher prices for groups that
A)have a lower demand.
B)have a more elastic demand.
C)value the product more.
D)have lower marginal benefit.

Question

Quizplus · Accepted Answer

Groups that value the product more are typically willing to pay a higher price for it, reflecting their higher valuation or utility derived from the product. This approach is based on the principle of price discrimination, where prices are tailored to the willingness to pay of different customer segments.

When Setting Prices for Different Groups of Customers, a Manager