If a monopoly is price discriminating between two groups, A and B, based on observable customer characteristics, there is a difference in the marginal cost of selling to the two groups, and the elasticity of demand for group A is -1.5 while the elasticity of demand for group B is -2.1, which of the following is true?

A. The markup and price for group A customers will be higher than for group B customers.

B. The markup and price for group B customers will be higher than for group A customers.

C. The markup for group A customers will be higher than for group B customers, but there is not enough information to determine which price will be higher.

D. The price for group A customers will be higher than for group B customers, but there is not enough information to determine which markup will be higher.


C. The markup for group A customers will be higher than for group B customers, but there is not enough information to determine which price will be higher.

Economics

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