Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

A firm in the airline industry practises third degree price discrimination. Which condition is most likely to make this possible?

  • AConsumers are able to buy cheaply and then sell the product at a higher price.
  • BPrice elasticity of demand is the same for all consumers in the market.
  • CThe firm faces a perfectly elastic demand curve.
  • DThe firm is able to keep the different market segments separate.

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