A Group Price Discriminator Sells Its Product in Florida for Three

question 125

Multiple Choice

A group price discriminator sells its product in Florida for three times the price it sets in New York.Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2.0,the demand in Florida

• A) has an elasticity of -6.0.
• B) is more price elastic than the demand in New York.
• C) has an elasticity of -1.2.
• D) has an elasticity of -0.67.

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Definitions:

Primates

An order of mammals that includes humans, monkeys, and apes, characterized by large brains, forward-facing eyes, and dexterous hands.

Meiosis

A kind of cell division that produces the sex cells, each of which has half the number of chromosomes found in other cells of the organism.

Chromosomes

In the cell nucleus, the structures, visible during cellular division, containing long strands of DNA combined with a protein.