Question

multiple choice question
the price - discriminating monopolist charges a higher price to customers who have ____ elastic demand and a lower price to customers who have ____ elastic demand.
o unit; perfect.
o more; less
o less; more
o perfect; unit

Explanation:

Price - discriminating monopolists charge a higher price to customers with less elastic demand because these customers are less responsive to price changes and will still buy the product at a higher price. They charge a lower price to customers with more elastic demand as these customers are more sensitive to price changes and a lower price will encourage more purchases.

Answer:

C. less; more