A Recent Study Has Concluded That Working Adults Have a Price

question 87

Multiple Choice

A recent study has concluded that working adults have a price elasticity of demand of 1.72 for train services, while pensioners have a price elasticity of demand of 3.74. If price discrimination is possible, then the company providing the train service will:

• A) charge a lower price to working adults than to pensioners.
• B) charge a lower price to pensioners than to working adults.
• C) earn higher profits by charging everyone the same price.
• D) lower prices for all customers because demand is elastic for both groups.

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Definitions:

Perceptual Sensitivity

The ability to notice or be aware of small changes in one's environment through the senses.

Basic Facts

Basic facts refer to fundamental, universally accepted pieces of information that serve as the foundation for more complex knowledge.

Developmental Changes

The transformations and growth individuals experience across the lifespan, including physical, cognitive, and socioemotional development.

Prenatal Development

The progression from fertilization to delivery, encompassing all stages of embryonic and fetal maturation inside the uterus.