You Produce Stereo Components for Sale in Two Markets, Foreign

Multiple Choice

You produce stereo components for sale in two markets, foreign and domestic, and the two groups of consumers cannot trade with one another. You will charge the higher price in the market with the:

A) lower own price elasticity of demand (more inelastic demand) .
B) higher own price elasticity of demand (more elastic demand) .
C) larger teenage population.
D) greater consumer incomes.