In price discrimination, which group of consumers is typically charged a higher price?

Multiple choice question for Monopoly. Select an option, then review the explanation below.

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The group consisting of the wealthiest individualsThe group made up of the oldest consumersThe group exhibiting the least price sensitivityThe group showing the greatest price sensitivity

Explanation

In price discrimination, sellers charge higher prices to consumers whose demand is less responsive to price changes, meaning those with more inelastic demand. This allows firms to maximize profits by extracting more from customers less likely to reduce consumption when prices rise.

Practice related questions from the same subject.

1.Which option best describes the concept of price discrimination?
2.In contrast to a perfectly competitive market, what is a monopolist more inclined to do?
3.In a pure monopoly market, how does the price compare to the marginal revenue?
4.What action should a monopolist take when marginal revenue is greater than marginal cost?
5.What is the likely impact on production costs if a natural monopoly is divided into several smaller companies by regulators?

In price discrimination, which group of consumers is typically charged a higher price?

Explanation

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