One Requirement for a Firm Pursuing a Price-Discrimination Strategy Is

question 126

Multiple Choice

One requirement for a firm pursuing a price-discrimination strategy is the ability to segment the market for its product.This means that

• A)the firm must set different prices for different regions where the product is sold.
• B)the firm must be willing to offer price discounts for senior citizens and children.
• C)the firm must be able to divide the market in a way that makes arbitrage impossible.
• D)the firm must choose a marketing strategy that appeals to different segments of the economy.

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Definitions:

Demand for Gasoline

The consumer's desire and ability to purchase gasoline at various price points.

Unit Elastic

A situation in economics where a change in the price of a good or service results in a proportional change in the quantity demanded or supplied.

Very Inelastic

Describes a situation where the demand or supply for a good or service is minimally responsive to changes in price.

Very Elastic

Refers to a situation in which the demand or supply for a product changes significantly in response to price changes, indicating high sensitivity.