Relative to a Situation Where Only a Single Price Is

question 184

Multiple Choice

Relative to a situation where only a single price is charged, a seller that engages in price discrimination will

• A) charge consumers with an inelastic demand a lower price.
• B) charge consumers with an elastic demand a higher price.
• C) generally produce a larger total output.
• D) decrease social welfare and make all consumers worse off.

---

Definitions:

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations, mandating strict reforms to improve financial disclosures and prevent accounting fraud.

Financially Burdensome

Describing a situation or requirement that imposes a significant financial strain or expense on an individual or organization.

Legislation

Laws that have been enacted by a governmental body or legislature.

Business Legislation

Laws that govern how businesses can operate, including regulations on company formation, taxation, and employment.