If a Price-Discriminating Monopolist Sells the Same Product in Two

question 220

Multiple Choice

If a price-discriminating monopolist sells the same product in two markets but charges a higher price in market X and a lower price in market Y, the pricing difference indicates that demand is

• A) more elastic in market X than in market Y.
• B) less elastic in market X than in market Y.
• C) less elastic in market Y than in market X.
• D) the same in both markets X and Y.

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Definitions:

Industrial Advanced Countries (IACs)

Countries characterized by high levels of industrialization, technological advancement, and economic development.

Skilled Workers

Employees who have specialized training, expertise, or qualifications that allow them to perform complex job tasks.

Agricultural Workers

Individuals engaged in various activities related to farming, including cultivation, harvesting, and livestock rearing.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, often measured by increases in GDP, literacy rates, and access to healthcare.