(Last Word) Suppose That a Firm Has "Pricing Power" and Can

question 137

Multiple Choice

(Last Word) Suppose that a firm has "pricing power" and can segregate its market into two distinct groups based on differences in elasticities of demand.The firm might charge

• A)a lower price to the group that has the less elastic demand.
• B)a higher price to the group that has the less elastic demand.
• C)the same price to both groups but include a "free" related product for the group that has an inelastic demand.
• D)the same price to both groups but make it difficult for the group with the more elastic demand to gain access to the product.

---

Definitions:

French Language

A Romance language spoken as a first language in France, parts of Belgium and Switzerland, and in many other countries as a second language.

Distinct Colour

A unique or specific color used to identify or differentiate products, brands, or entities.

Undisclosed Financial Interest

A situation where an individual has a financial stake in an undertaking that they have not made known, potentially leading to a conflict of interest.

Doctrine of Constructive Notice

A principle in law whereby individuals are assumed to be aware of their legal rights and obligations, even if they do not possess actual knowledge of them.