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Grant Widner
on Dec 12, 2024

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If a profit-maximizing restaurant is going to increase its revenues by charging senior citizens (persons age 65 and over) lower prices than other customers,

A) the demand of senior citizens for the services of the restaurant must be inelastic.
B) senior citizens must have lower incomes than other potential customers.
C) the demand of senior citizens for the services of the restaurant must be elastic.
D) senior citizens must have higher incomes than other potential customers.
E) other customers must enjoy food more than senior citizens.

Elastic Demand

A condition in which the percentage change in quantity demanded of a product is greater than the percentage change in its price, indicating high sensitivity to price changes.

Senior Citizens

Individuals who are considered elderly, typically qualifying for certain benefits at a particular age, often 65 or older.

Profit-Maximizing

A strategy or behavior aimed at making the highest possible profit, where marginal costs equal marginal revenues.

  • Comprehend the influence of price discrimination on the prices paid by consumers as a result of demand elasticity.
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Humayra ShalizanDec 16, 2024
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