Suppose a Producer Is Able to Separate Customers into Two

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, she should:

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) charge the same price to both groups of customers
D) increase the price for both groups of customers