When practicing price discrimination, a firm can increase its revenue by:
a. charging a higher price to the customers with a more inelastic demand.
b. charging a higher price to the customers with a perfectly elastic demand.
c. supplying more in a market with a more inelastic demand.
d. supplying less in a market with lower elasticity of demand.
e. charging a lower price in a market dominated by wealthy consumers.
a
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For the U.S. federal government, mandatory spending refers to
A) spending that is not subject to Congress's annual appropriations process. B) spending that never changes in amount from year to year. C) spending on federal employee salaries. D) spending that must be authorized by Congress each year.
The life-cycle hypothesis applies the concept of ________ to retirement
A) income & substitution effects B) transitory income C) autonomous consumption D) consumption smoothing