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

question 229

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:

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