In a price discrimination setting, who pays the higher price for the same good?

Question

Quizplus · Accepted Answer

In a price discrimination setting, the consumers with the most inelastic demand pay the highest price because they are willing to pay a higher price for the good despite a change in price. On the other hand, consumers with more elastic demand are more sensitive to changes in price and would not be willing to pay a high price. Therefore, to maximize profits, firms charge higher prices to consumers with inelastic demand and lower prices to consumers with elastic demand.

In a Price Discrimination Setting, Who Pays the Higher Price