If the producer is a monopolist and the elasticity of demand is different in different markets, then the Price Discriminatory Policy would be

Profitable for the producer

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Disadvantageous to the wholesaler

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Profitable for the consumer

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Disadvantageous to the producers

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Solution

The correct option is A
Profitable for the producer

If the producer is a monopolist and the elasticity of demand is different in different markets, then the Price Discriminatory Policy would be profitable for the producer. Hence, every producer has to predetermine the selling price of the product.

Suggest Corrections

Similar questions

Consider the following statements:

1. WPI measure price rise at the wholesale level where wholesale means sale in large quantities and meant for resale.

2.Producer Price Index means the prices of goods as they are sold to the whole sales by the producers.

3. The price of electricity in the CPI is the Industrial tariff & not the consumer tariff.

Response:

20 %

25 %

20 %

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