Suppose a Producer Is Able to Separate Customers into Two

question 63

Multiple Choice

Suppose a producer is able to separate customers into two groups,one having an inelastic demand and the other having an elastic demand.If the producer's objective is to increase total revenue,she should

• A) increase the price charged to customers with the elastic demand and decrease the price charged to customers with the inelastic demand.
• B) decrease the price charged to customers with the elastic demand and increase the price charged to customers with the inelastic demand.
• C) decrease the price to both groups of customers.
• D) increase the price for both groups of customers.

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Definitions:

White Blood Cells

Immune system cells that defend the body against infectious diseases and foreign substances.

Histamine

A compound found in the body as a part of the immune response that causes dilation of capillaries, contraction of smooth muscle, and stimulation of gastric acid secretion, involved in allergic reactions.

Heparin

A medication used as an anticoagulant to prevent and treat blood clots.

Basophils

A type of white blood cell involved in immune responses and inflammation, known for releasing histamine and other chemicals during allergic reactions.