Which of the Following Statements Is Correct

question 92

Multiple Choice

Which of the following statements is correct?

• A) Price discrimination is always more profitable than charging a single price.
• B) A price discriminator would want to charge the highest price to those customers with the most elastic demand for his product.
• C) To be successful, a price discriminator must assure that items can be resold between high- and low-price groups.
• D) To maximize profit, a price discriminator distinguishes groups with different demands and charges higher prices to those with the more inelastic demand.

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Definitions:

Market Index

A statistical measure that shows changes in a securities market, representing a segment of the stock market or of the economy.

DAX

The DAX is a major stock market index tracking the performance of 40 major companies listed on the Frankfurt Stock Exchange in Germany.

Commercial Banks

Financial institutions that accept deposits, offer various loans, and provide other financial services to businesses and individuals.

Federal Reserve

The central banking system of the United States responsible for setting monetary policy, including the manipulation of interest rates to control inflation and stabilize the currency.