A price-discriminating monopolist will tend to charge a higher price to senior citizens if it believes that senior citizens:
A) have a lower willingness to pay than other demanders.
B) have a greater willingness to pay than other demanders.
C) have very elastic demand curves.
D) have horizontal demand curves.

Question

Quizplus · Accepted Answer

The monopolist will charge a higher price to senior citizens if it believes that they have a greater willingness to pay than other demanders. This is because senior citizens may have a higher disposable income or may place a higher value on the good or service being offered.

A Price-Discriminating Monopolist Will Tend to Charge a Higher Price