A firm that can effectively price discriminate will charge a higher price to
A)customers who have the more elastic demand for the product.
B)customers who have the more inelastic demand for the product.
C)buyers who belong to the largest market segment.
D)buyers who are members of the smallest market segment.

Question

Quizplus · Accepted Answer

A firm that can effectively price discriminate will charge a higher price to customers who have the more inelastic demand for the product. This is because customers with more inelastic demand have less flexibility and are willing to pay a higher price for the good or service, while customers with more elastic demand are more price-sensitive and may choose to forgo the purchase altogether if the price is too high.

A Firm That Can Effectively Price Discriminate Will Charge a Higher