If Sellers Could Price-Discriminate and Charge Two Different Prices to Two

question 251

Multiple Choice

If sellers could price-discriminate and charge two different prices to two different groups of buyers in order to increase revenues, then the sellers would charge

• A)a higher price to the buyers whose demand is elastic.
• B)a higher price to the buyers whose demand is inelastic.
• C)a higher price to the buyers whose demand is unit-elastic.
• D)the same price, actually, because price-discrimination will result in lower revenues.

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The authority given to a legal body like a court to administer justice within a certain area of law or geographic territory.