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If Sellers Could Price-Discriminate and Charge Two Different Prices to Two

Question 251

Multiple Choice

If sellers could price-discriminate and charge two different prices to two different groups of buyers in order to increase revenues, then the sellers would charge


A) a higher price to the buyers whose demand is elastic.
B) a higher price to the buyers whose demand is inelastic.
C) a higher price to the buyers whose demand is unit-elastic.
D) the same price, actually, because price-discrimination will result in lower revenues.

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