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A group price discriminator sells its product in Florida for three times the price it sells it in New York. Assuming the firm faces the
A group price discriminator sells its product in Florida for three times the price it sells it in New York. Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is
2.0,
the demand in FloridaPart 2
A.
has an elasticity of
0.67.
B.
has an elasticity of
6.0.
C.
has an elasticity of
1.2.
Your answer is correct.
D.
is more price elastic than the demand in New York.
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