Suppose a Producer Is Able to Separate Customers into Two

question 102

Multiple Choice

Suppose a producer is able to separate customers into two groups,one having a price inelastic demand and the other having a price elastic demand.If the producer's objective is to increase total revenue,what should she do

• A)Increase the price charged to customers with the price elastic demand and decrease the price charged to customers with the price inelastic demand.
• B)Decrease the price charged to customers with the price elastic demand and increase the price charged to customers with the price inelastic demand.
• C)Decrease the price to both groups of customers.
• D)Increase the price for both groups of customers.

---

Definitions:

Molecular Formula

A representation of the types and numbers of atoms in a compound without showing how they're connected.

Quantitative Elemental Analysis

A method in chemistry for determining the percentage composition of each element within a compound.

Acidity

A measure of a substance's ability to donate a proton or accept an electron pair in reactions, commonly associated with pH in aqueous solutions.

Stronger Base

A species with a greater tendency to accept protons compared to another base, often characterized by its higher basicity constant (Kb).