A firm practicing price discrimination would charge a higher price to buyers with relatively elastic demand curves and a lower price to buyers with relatively inelastic demand curves.

Question

Quizplus · Accepted Answer

Price discrimination involves charging a higher price to buyers with relatively inelastic demand curves (who are less sensitive to price changes) and a lower price to those with relatively elastic demand curves (who are more sensitive to price changes), to maximize revenue.

A Firm Practicing Price Discrimination Would Charge a Higher Price