Suppose That a Local Gym Can Divide Its Customers into Two

Multiple Choice

Suppose that a local gym can divide its customers into two groups with different price elasticities of demand.Which of the following is true?

A) If a local gym uses price discrimination, it will charge the lower price to the group with the most price elastic demand.
B) If a local gym uses price discrimination, it will charge the higher price to the group with the most price elastic demand.
C) Although the different groups have different price elasticities of demand, they have the same willingness-to-pay for gym memberships.
D) Price discrimination will not benefit a local gym.