The Strategy Underlying Price Discrimination Is

question 33

Multiple Choice

The strategy underlying price discrimination is

• A) to charge higher prices to customers who have good substitutes available to them and lower prices to customers without many substitutes available to them..
• B) to charge everyone the same price but limit the quantity they are allowed to buy.
• C) to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.
• D) to reduce per-unit cost by charging higher prices to those with the most inelastic demand and lower prices to those with the most elastic demand.

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