Assume That the Buyers of Good Z Fall into Two

question 171

Multiple Choice

Assume that the buyers of good Z fall into two groups: buyers that have elastic demand and buyers that have inelastic demand. If the firm selling good Z can charge different prices to different groups of people, the firm would prefer to ______________ the price charged to the elastic group and _______________ the price charged to the inelastic group.

• A)raise; lower
• B)lower; lower
• C)lower; raise
• D)raise; raise