Multiple Choice
Suppose a producer is able to separate customers into two groups,one having a price inelastic demand and the other having a price elastic demand.If the producer's objective is to increase total revenue,what should she do
A) Increase the price charged to customers with the price elastic demand and decrease the price charged to customers with the price inelastic demand.
B) Decrease the price charged to customers with the price elastic demand and increase the price charged to customers with the price inelastic demand.
C) Decrease the price to both groups of customers.
D) Increase the price for both groups of customers.
Correct Answer:
Verified
Correct Answer:
Verified
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