When setting prices for different groups of customers, a manager should charge lower prices to groups that
A)value the product more.
B)have a more elastic demand.
C)have a higher demand.
D)have a more inelastic demand.

Question

Quizplus · Accepted Answer

Lower prices should be charged to groups with more elastic demand because they are more price-sensitive and will be more responsive to a lower price. This will lead to increased sales for the firm.

When Setting Prices for Different Groups of Customers, a Manager