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Answer : 2. "elasticity of demand"
On what basis does the monopolist resort to price discrimination?
5Q:
On what basis does the monopolist resort to price discrimination?
- 1Elasticity of supplyfalse
- 2elasticity of demandtrue
- 3law of demandfalse
- 4law of supplyfalse
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Answer : 2. "elasticity of demand"
Explanation :
Price discrimination is practiced based on the seller's belief that customers in certain groups can be asked to pay more or less based on certain demographics or on how they value the product or service in question.