In a price-discrimination setting,people with the most inelastic demand
A) pay the lowest price for the same good.
B) pay the same price as everybody else.
C) pay the highest price for the same good.
D) pay either a higher or a lower price.
E) do not buy the good.

Question

Quizplus · Accepted Answer

People with the most inelastic demand are those who are willing to pay a higher price for the same good. If a firm is using price discrimination, they will charge customers with the most inelastic demand the highest price, as they are less likely to switch to a competitor or stop buying the good altogether.

In a Price-Discrimination Setting,people with the Most Inelastic Demand