Which of the Following Is a Necessary Condition for Price

question 172

Multiple Choice

Which of the following is a necessary condition for price discrimination to be profitable?

• A) All consumers must have an identical demand for the product.
• B) Groups of consumers with different demand elasticities must be easily distinguishable.
• C) The market demand for the product must be highly elastic.
• D) It must be possible for buyers to resell the product at a low cost.

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Definitions:

Final Goods

Products that are ready for consumption by individuals or businesses, without further transformation or being used in producing other goods.

Real GDP

The total value of all goods and services produced in a country in a year, adjusted for inflation or deflation.

Base Year

A specific year against which economic growth or other economic indicators are measured, serving as a comparison point.

GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced over a specific time period within a country's borders.