If a Price-Discriminating Monopoly Charges a Lower Price to Individuals

question 178

Multiple Choice

If a price-discriminating monopoly charges a lower price to individuals in City X,it is likely that the firm

• A) believes that the demand of individuals in City X is relatively inelastic.
• B) believes that the demand of individuals in City X is relatively elastic.
• C) wants to shift the demand of individuals in City X.
• D) cares about the well-being of the individuals in City X.

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Definitions:

The Netherlands

A country located in Northwestern Europe, known for its flat landscape, extensive waterways, windmills, tulips, and cycling routes.

Suicide Rates

A rephrased measure indicating the frequency of suicide occurrences in a specified population, usually presented as the amount of suicides per unit of population over a given time frame.

Western Asia

A region covering the westernmost part of Asia, including countries such as Saudi Arabia, Turkey, and Iran.

North America

A continent located in the Northern Hemisphere, mostly in the Western Hemisphere, including countries such as the USA, Canada, and Mexico.