A price discriminating monopolist will

Question

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Price discrimination means charging different prices to different groups of consumers based on their willingness to pay. The monopolist will try to extract the maximum amount of revenue from each consumer group. Consumers with more elastic demand are more sensitive to price changes, so the monopolist will charge a lower price to them to capture more of their business. This allows the monopolist to charge a higher price to consumers with less elastic demand who are willing to pay more for the good.

A Price Discriminating Monopolist Will