When a monopolist engages in price discrimination, consumers _____ demand tend to pay a _____ price.
A)who value the product more; higher
B)who are especially price sensitive; higher
C)who are absolutely price sensitive; higher
D)who value the product more; lower

Question

Quizplus · Accepted Answer

When a monopolist engages in price discrimination, they charge different prices to different customers based on their willingness to pay. The customers who value the product more are willing to pay a higher price, so the monopolist charges them a higher price. Therefore, the correct option is A) who value the product more; higher.

When a Monopolist Engages in Price Discrimination, Consumers _____ Demand