If Price Discrimination Occurs in a Market

question 3

Multiple Choice

If price discrimination occurs in a market,

• A)the law of one price does not hold.
• B)the firm earns arbitrage profits.
• C)consumers whose demand for the product sold is more elastic pay higher prices than consumers whose demand is less elastic.
• D)the marginal cost of production is constant.

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Definitions:

Antipsychotic

A classification of medication primarily used to manage psychosis, including schizophrenic and bipolar disorders, by altering neurotransmitter levels in the brain.

Drug

A substance that, when ingested, injected, inhaled, or absorbed, can alter physiological or psychological functions in living organisms.

Motor Coordination

The ability to execute smooth, accurate, and controlled motor responses, integrating the movement of various body parts.

Dopamine Synapses

The junctions between neurons where the neurotransmitter dopamine is released, playing a key role in the brain's reward system and movement control.