If the price elasticity of demand for U.S. automobiles is higher in Europe than it is in China, and transport costs are zero, a price-discriminating monopolist would charge
A) the same price for autos in China as in Europe.
B) a lower price for autos in China than in Europe.
C) a higher price for autos in China than in Europe.
D) a less profitable price for autos in China than in Europe.

Question

Quizplus · Accepted Answer

A price-discriminating monopolist would charge a higher price in the market with lower price elasticity of demand, which is China in this case, compared to Europe where the elasticity is higher.

If the Price Elasticity of Demand for U