Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A firm is practising price discrimination. To maximise profits, what action should the firm take?

  • Acharge a higher price to consumers earning higher incomes
  • Bcharge a higher price to consumers earning lower incomes
  • Ccharge a higher price to consumers whose demand for the product is price inelastic
  • Dcharge a higher price to consumers whose demand for the product is price elastic

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