Which of the Following Is a Necessary Condition for Price

question 172

Multiple Choice

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

• A) All consumers must have an identical demand for the product.
• B) Groups of consumers with different demand elasticities must be easily distinguishable.
• C) The market demand for the product must be highly elastic.
• D) It must be possible for buyers to resell the product at a low cost.

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Definitions:

Delegation

The assignment of authority and responsibility to another person to carry out specific activities while retaining the ultimate accountability.

Mechanic

A professional who repairs and maintains machinery, engines, and other mechanical equipment.

Mortgage

A mortgage is a legal agreement by which a bank or another creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Assignment

The transfer of rights, property, or obligations from one party to another.