Which of the following statements about price discrimination is correct?
A. A price discriminating firm will want to charge a higher price to the consumer group with the more inelastic demand.
B. A firm will always be able to increase its profit by price discriminating rather than charging the same price to all customers.
C. Price discrimination will be most effective when buyers can easily resell the product amongst themselves.
D. Each consumer will pay a higher price when a firm is a price discriminator than would be the case if all customers were charged the same price.
Answer: A
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