A Monopolist Has Four Distinct Groups of Customers

question 130

Multiple Choice

A monopolist has four distinct groups of customers. Group A has an elasticity of demand of 0.2, B has an elasticity of demand of 0.8, C has an elasticity of demand of 1.0, and D has an elasticity of demand of 2.0. The group paying the highest price for the product will be

• A) A.
• B) B.
• C) C.
• D) D.

---

Definitions:

Public University

An educational institution of higher learning that is primarily funded by the government and accessible to the public.

Regulatory Taking

Occurs when a government regulation limits the use of private property to such a degree that it effectively deprives the owner of its economic use or value.

Land Use Restriction

Regulations that govern how land can be used in specific areas to control development and preserve the environment.

Diminishes Value

Refers to any action or occurrence that lessens or reduces the worth or perceived worth of something, often used in legal and commercial contexts.