Price discrimination is profitable and possible if the target market has __________.

equal electricity of demand

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different elasticity of demand

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inelastic demand

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highly elastic demand

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Solution

The correct option is B different elasticity of demand
Price discrimination is a pricing strategy where identical or similar goods or services transacted at different prices by the same manufacturer in different markets. If the target market has different elasticity of demand ie a market where the demand for the product is low then the marketer can sell the product at lower prices as compared to the market where the demand for the same product is high.

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