Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
Price discrimination in monopoly is possible only when price elasticity of demand in different markets is ____________.
Options:
Same
Different
Less than 1
Zero
Correct Answer:
Different
Explanation:
It is only when the price elasticity of demand is different in different markets that a monopolist can sell the same good at different prices. The market where elasticity is high, low prices are charged and vice versa.