If a Firm Is Practicing Third- Degree Price Discrimination and Is

question 95

Multiple Choice

If a firm is practicing third- degree price discrimination and is charging a price of $8 per unit to consumers in Group A and a price of $10 to consumers in Group B, which of the following is true?

• A)Group A consumers are less responsive to price changes than Group B consumers.
• B)Group B consumers have a greater price elasticity than Group A consumers.
• C)Group A consumers have a lower price elasticity than Group B consumers.
• D)Group A consumers have a greater price elasticity than Group B consumers.

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Definitions:

High Power Need

A psychological drive that motivates individuals to seek control, influence, or authority over others.

Affiliation Needs

The psychological need for friendly social interactions and relationships with others.

Thematic Apperception Test

A projective psychological test that assesses a person's patterns of thought, attitudes, observational capacity, and emotional responses to ambiguous test materials.

Need for Affiliation

An individual's urge to form connections and maintain positive interpersonal relationships.