A Firm That Can Price-Discriminate Should Adjust Prices So That

question 239

Multiple Choice

A firm that can price-discriminate should adjust prices so that customers with _____ demand pay _____ prices than/as do those with _____ demand.

• A)price-inelastic;lower;elastic
• B)price-inelastic;the same;elastic
• C)price-elastic;lower;inelastic
• D)price-elastic;higher;inelastic

---

Definitions:

Elaboration-Likelihood

A model of persuasion that posits there are two primary cognitive processing paths—central and peripheral—that influence the likelihood of message-induced attitude change.

Persuasion Cues

Elements in communication that influence the receiver's acceptance of a message, including source credibility, message content, and emotional appeals.

Reciprocity Principle

A social psychology concept stating that people are more likely to comply with a request from someone who has previously done something for them.

Lecture Notes

Written or typed summaries of the important points covered during a lecture.