Q895
In price discrimination under discriminating monopoly, given that the elasticity of demand in market I is 5 and in market II is 2.5 measured in absolute terms, how are the prices in the two markets related to each other?
A.
Price in the market I is 2/3 of the price in market II
B.
Price in the market I is 3/4 of the price in Market II
AnswerC.
Price in the market I is 1/2 of the price in market II
D.
Price in the market I is equal to the price in market II
Answer: Option B
Solution
Answer: Option B
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