Online companies gather personal information about the customers who shop on their websites, and some of those companies will use the data to estimate price elasticities of the customers.Doing this is a way that these companies might be able to charge a higher price for a product to those customers who have a ________ price elasticity of demand.

Question

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Companies are likely to charge higher prices to customers with low price elasticity of demand because these customers are less sensitive to price changes and are more likely to purchase the product even at higher prices.

Online Companies Gather Personal Information About the Customers Who Shop