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Homework answers / question archive / Suppose a monopolist has four distinct groups of customers
Suppose a monopolist has four distinct groups of customers. Group A has a price elasticity of demand of 0.29, group B has an elasticity of demand of 0.82, group C has an elasticity of demand of 1.0, and group D has an elasticity of demand of 1.75. A firm that engages in price discrimination will charge the highest price to Group ?? OD ?? OB
Customer "D" should be the answer because customer D has the highest demand of elasticity i.e 1.75 that denotes quality demanded changes (%) more than price change (%).
So customer "D" will be a correct choice.
