If a Price-Discriminating Monopolist Sells the Same Product in Two

question 25

Multiple Choice

If a price-discriminating monopolist sells the same product in two markets but charges a higher price in market X and a lower price in market Y,the pricing difference indicates that demand is:

• A) more elastic in market X than market Y.
• B) less elastic in market X than market Y.
• C) less elastic in market Y than market X.
• D) the same in both markets X and Y.

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Definitions:

Process Field Devices

Instruments and sensors located in the field or the physical process area, used for measuring and controlling variables such as temperature and pressure.

Cross-Talk Interference

A phenomenon in which a signal transmitted in one circuit or channel of a transmission system creates an undesired effect in another circuit or channel.

Low Voltage

Describes electrical systems or components designed to operate at relatively low voltages, typically considered to be less than 50 volts.

High Voltage

An electrical voltage that is significantly higher than standard utility voltages, typically defined as above 1000 volts.