Which of the following conditions does not need to be satisfied in order to practice price discrimination?
A)a perfectly elastic demand curve
B)a negatively-sloped demand curve for the firm's output
C)the ability to identify customers who are willing to pay more for the good
D)the ability to identify customers who are not willing to pay more
E)the ability to prevent resale of the good

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve means that any increase in price will cause a complete loss of customers, making price discrimination impossible. The other conditions listed are necessary for price discrimination to occur.

Which of the Following Conditions Does Not Need to Be