Suppose That a Local Gym Can Divide Its Customers into Two

question 81

Multiple Choice

Suppose that a local gym can divide its customers into two groups with different price elasticities of demand.Which of the following is true?

• A) If a local gym uses price discrimination, it will charge the lower price to the group with the most price elastic demand.
• B) If a local gym uses price discrimination, it will charge the higher price to the group with the most price elastic demand.
• C) Although the different groups have different price elasticities of demand, they have the same willingness-to-pay for gym memberships.
• D) Price discrimination will not benefit a local gym.

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Definitions:

Paranoid Schizophrenia

A subtype of schizophrenia characterized by prominent delusions of persecution or conspiracy, often accompanied by auditory hallucinations.

Hallucinations

Perceptions or sensations that appear real but are created by the mind, without an external stimulus.

Delusions of Persecution

A type of delusion where an individual believes, without basis, that they are being mistreated, spied on, or harassed by others.

Positive Symptoms

Features of a disorder that are present and observable, such as hallucinations or delusions, especially in the context of schizophrenia.