In Case of Third-Degree Price Discrimination in Two Markets with Differing

question 60

Multiple Choice

In case of third-degree price discrimination in two markets with differing demand elasticities,price will:

• A)converge in the two markets if resale is possible.
• B)be higher in the market with the more elastic demand.
• C)be higher in the market with the higher average cost.
• D)differ between the two markets only if the number of consumers varies.

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Definitions:

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The approach or mindset adopted in order to resemble or replicate the thought processes of a particular group, situation, or individual.

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Social connections that are not very strong or close but can be important for spreading information or opportunities.