If Sellers Could Price-Discriminate and Charge Two Different Prices to Two

question 235

Multiple Choice

If sellers could price-discriminate and charge two different prices to two different groups of buyers in order to increase revenues, then the sellers would charge

• A) a higher price to the buyers whose demand is elastic.
• B) a higher price to the buyers whose demand is inelastic.
• C) a higher price to the buyers whose demand is unit-elastic.
• D) the same price, actually, because price-discrimination will result in lower revenues.

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Definitions:

Cerebrum

The largest part of the brain, responsible for voluntary muscular activity, vision, speech, taste, hearing, thought, and memory.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex brain functions such as thought, memory, and consciousness.

Parietal Lobes

Regions of the brain located behind the frontal lobes and above the occipital lobes, involved in processing sensory information from various parts of the body, understanding spatial orientation, and managing language and mathematics.

Auditory Cortex

The part of the brain that is responsible for processing auditory information, located in the temporal lobe.