Which of the Following Is the Main Principle Behind Price

question 45

Multiple Choice

Which of the following is the main principle behind price discrimination?

• A) If the demand curves are different, it is more profitable to set different prices in different markets than a single price that covers all markets.
• B) To maximize profit the firm should set a higher price in markets with more inelastic demand.
• C) Arbitrage makes it difficult for a firm to set different prices in different markets thereby reducing the profit from price discrimination.
• D) All of the answers are correct.

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Definitions:

Asian American

A person of Asian descent living in America; often relating to a broad group of American citizens and residents with origins from East, Southeast, or South Asia.

Buying Patterns

Buying Patterns refer to the habits or tendencies displayed by consumers when purchasing goods and services, often influenced by various factors such as tradition, culture, or economic situation.

Entrepreneurial

Pertaining to the characteristics, behaviors, and practices of individuals who initiate, organize, and operate a business venture.

Asian American

A term referring to individuals in the United States who have Asian ancestry from countries within the continent of Asia.