Which of the Following Is a Necessary Condition for Price

question 208

Multiple Choice

Which of the following is a necessary condition for price discrimination to be profitable?

• A) All consumers must have identical preferences.
• B) It must be easy to distinguish consumer groups with differing responses to higher prices.
• C) The seller must face a horizontal demand curve for its product in at least one part of the market.
• D) Both b and c are correct.

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Definitions:

Single Mothers

Women who are raising their children without the presence or support of a partner.

Struggle With Poverty

The ongoing hardship and difficulties faced by individuals or communities living below the poverty line, affecting their quality of life.

Transitional Poverty

A temporary state of economic hardship experienced by individuals or families as they attempt to move from one socioeconomic status to another.

Laid Off

The termination of employment due to the employer's decision, often because of budget cuts or company downsizing, not because of the employee's personal performance.