Under monopoly, price discrimination depends upon:
(a) Elasticity of demand for a commodity
(b) Elasticity of supply for a commodity
(c) Size of market
(d) All of the above

Dear Student

Option a is the correct answer . Elasticity of demand of a commodity determines how much the demand for the commodity will be affected by change in price of the commodity . So in order to price discriminate the monopolist has to follow elasticity . If a commodity is highly elastic then monopolist cannot discriminate .

Regards .

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