- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 9. The Firm and Market Structures
- Subject 6. Price Discrimination
CFA Practice Question
A price-discriminating monopolist will charge the lowest price to the group with the ______.
B. most inelastic demand
C. most people in it
D. least people in it
E. greatest willingness to pay
A. most elastic demand
B. most inelastic demand
C. most people in it
D. least people in it
E. greatest willingness to pay
Correct Answer: A
A price-discriminating monopolist will charge the lowest price to those with the most elastic demand and raise the price to the group with less elastic demand.
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