Suppose a Producer Is Able to Separate Customers into Two

question 243

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)charge the same price to both groups of customers.
• D)increase the price for both groups of customers.

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Definitions:

Mischel

Walter Mischel, a psychologist known for his work on personality theory and cognitive-affective system theory of personality.

Personality Coefficients

A quantifiable measure used to indicate the strength of the relationship between personality traits and certain behaviors or outcomes.

Situationists

Scholars or psychologists who argue that human behavior is primarily determined by surrounding circumstances rather than by personal qualities.

Personality Traits

Enduring characteristics and behaviors that distinguish one individual from another.