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Zach and Laura Want to Buy Cars and Go to the Same

Question 23

Multiple Choice

Zach and Laura want to buy cars and go to the same dealer.The dealer perceives Zach's price elasticity of demand to be lower than Laura's.Which of the following statements will be true?


A) The dealer will quote the same price to both since individual characteristics do not matter.
B) The dealer will quote a higher price to Laura because of her gender.
C) The dealer will quote a higher price to Zach because his demand is less elastic.
D) The dealer will quote different prices to both according to their bargaining tactics.

Correct Answer:

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