Which of the Following Is True

question 111

Multiple Choice

Which of the following is true?

• A) A price-discriminating seller will charge consumers with an elastic demand a lower price than consumers with an inelastic demand.
• B) A firm must face a horizontal demand curve for its product in order to engage in effective price discrimination in a market.
• C) Price discrimination always harms consumers and helps sellers in the short run but in the long run, consumers benefit at the expense of sellers.
• D) A seller must have a monopoly in order to gain from price discrimination.

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Definitions:

Gain Contingency

A potential financial gain that may occur in the future, dependent on certain events or conditions being met.

Binding Agreement

A contract or agreement that is legally enforceable in a court of law, implying that all parties have agreed to the terms and conditions.