Question

What of the following statements is not true about group price discrimination?

Group of answer choices

it is less difficult to charge different prices to different consumers if a good is an individually provided service, such as haircuts

the group of consumers with more elastic demand (as a given price) will be charged a higher price

in theory the good considered must be the same, but in the real world a price discriminating monopolist may need to change the good in order to charge different prices (e.g., put it into a different container or box).

Answer 1

Price discrimination is charging different prices from different groups of people for identical goods and services.

Differences in the elasticity of Demand is one of the main condition for Price discrimination.

The persons have Inelastic demand for the Product are charged higher prices as they would be ready to pay higher prices for the same good whereas people with elastic demand are charged lower prices as they wouldn't be ready to pay high prices for the same good.

Therefore, Option B is correct as it is incorrect about Price discrimination that Higher prices are charged from group of people having Elastic demand.

The other options are true for Price discrimination. Therefore,the other options are incorrect