What impact does price discrimination have on the quantity a company sells?
A)The quantity increases.
B)The quantity decreases.
C)The quantity remains the same.
D)The quantity increases and then decreases.

Question

Quizplus · Accepted Answer

Price discrimination can allow a company to sell more units to different customers at different prices, thereby increasing the overall quantity sold. This is because different customers have different price elasticities of demand, meaning they are willing to pay different prices for the same product. By pricing products differently for different groups of customers, a company can capture more of the market and sell more units overall.

What Impact Does Price Discrimination Have on the Quantity a Company