A firm carries out price discrimination when it charges

a. a lower price to consumers whose demand is more elastic.

b. the same price to all of their consumers.

c. a higher price when their marginal cost is lower.

d. a higher price to consumers whose demand is more elastic.

Question

Deon

Business

23 June, 12:56

A firm carries out price discrimination when it charges

a. a lower price to consumers whose demand is more elastic.

b. the same price to all of their consumers.

c. a higher price when their marginal cost is lower.

d. a higher price to consumers whose demand is more elastic.

+4

Answers (1)

Know the Answer?

Margaret Larson · Answer 1

A firm carries out price discrimination when it charges a lower price to consumers whose demand is more elastic. Price elasticity measures the relationship change between the quantity demanded or purchase of a product when the price changes. Price discrimination is when a company changes the priced based on the person making the purchase of the product.

A firm carries out price discrimination when it chargesa. a lower price to consumers whose demand is more elastic.b. the same price to all of their consumers.c. a higher price when their marginal cost is lower.d. a higher price to consumers whose demand is more elastic.

A firm carries out price discrimination when it charges

a. a lower price to consumers whose demand is more elastic.

b. the same price to all of their consumers.

c. a higher price when their marginal cost is lower.

d. a higher price to consumers whose demand is more elastic.