A third-degree price-discriminating pure monopoly will follow a system where _____.

a) buyers with relatively more inelastic demands are charged higher prices than buyers with relatively more elastic demands

b) the price of the product is held the same even if the demand changes

c) all buyers are charged the same price regardless of their elasticity of demand

d) buyers with relatively more inelastic demands are charged lower prices than buyers with relatively more elastic demands

Respuesta :

Answer:

a) buyers with relatively more inelastic demands are charged higher prices than buyers with relatively more elastic demands

Explanation:

Third-degree price discrimination, also known as market segmentation due to price discrimination, consists in price variation depending on the segment of the market to which the consumer belongs.

In this way, each consumer is charged a different price, but the price remains constant for any total amount purchased. This degree of discrimination is the most common used by companies and includes examples such as discounts to students or retirees.