A price-discriminating firm will adjust prices so that customers who _____ pay _____ customers with demand that is _____ price sensitive.
A)value the product more; less than; especially
B)are sensitive to price; less than; not
C)are not sensitive to price; the same as; especially
D)are sensitive to price; more than; not

Question

Quizplus · Accepted Answer

A price-discriminating firm will charge higher prices to customers who are less sensitive to price and lower prices to customers who are more price sensitive. Therefore, option B is the correct choice as it states that the firm will adjust prices so that customers who are sensitive to price will pay less than customers who are not sensitive to price.

A Price-Discriminating Firm Will Adjust Prices So That Customers Who