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

question 5

Multiple Choice

If a firm is practicing third- degree price discrimination and is charging a price of $15 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 B consumers have a lower price elasticity than Group A consumers.
• B)Group B consumers are less responsive to price changes than Group A consumers.
• C)Group B consumers have a greater price elasticity than Group A consumers.
• D)Group A consumers have a greater price elasticity than Group B consumers.

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Definitions:

Urine

A liquid by-product of metabolism in humans and many animals, expelled from the kidneys and stored in the bladder until elimination.

Efferent Arteriole

The blood vessel that carries blood away from the glomerulus of the kidney after filtration has occurred.

Peritubular Capillaries

Tiny blood vessels that surround the tubules in the kidney, involved in the exchange of substances between blood and the tubular fluid.

Glomerulus

A network of capillaries located in the nephrons of the kidney that plays a crucial role in filtering blood to form urine.