The Monopolist Engaged in Ordinary Price Discrimination

question 27

Multiple Choice

The monopolist engaged in ordinary price discrimination:

• A)the monopolist will have troubles finding out the exact value of the price elasticities of demand.
• B)charges higher prices in markets with higher absolute value of the price elasticity of demand.
• C)the prices in the two markets are not related to the respective price elasticities of demand.
• D)charges higher prices in markets with lower absolute value of the price elasticity of demand.

---

Definitions:

Continual Shortage

A persistent situation wherein the demand for a product or resource outweighs its supply, often resulting in sustained higher prices or unmet demand.

Floor Brokers

Professionals who execute trades on a trading floor of a stock exchange on behalf of clients.

Stock Exchange

A marketplace where securities, including stocks and bonds, are bought and sold.

Designated Securities

These are specific securities that have been selected for a special purpose, such as being eligible collateral for a loan or part of a regulated market segment.