Suppose the elasticity of demand for tickets to see a play in the Toronto Theatre District shows is 2.0 for men and 0.3 for women.To use price discrimination to increase profits,the producers should charge lower prices to _____ because their demand is more _____.
A) men;elastic than that of women
B) men;inelastic than that of women
C) women;elastic than that of men
D) women;inelastic than that of men

Question

Quizplus · Accepted Answer

Since the elasticity of demand is higher for men (2.0) compared to women (0.3), men are more responsive to changes in price and have a more elastic demand. Therefore, the producers should charge lower prices to men, and this strategy would lead to an increase in profits.

Suppose the Elasticity of Demand for Tickets to See a Play