Final answer:
The group charged a lower price in the price discrimination model has a relatively inelastic demand, meaning their quantity demanded changes less than proportionally to the price change, leading to them paying lower prices.
Step-by-step explanation:
In the price discrimination model, the group that is charged a lower price typically has a relatively inelastic demand. This means that the percentage change in quantity demanded is smaller compared to the percentage change in price. Therefore, when a company can identify and separate different market segments, they might charge a lower price to customers who are less sensitive to price changes - where their demand is inelastic - because those customers would not significantly reduce their quantity demanded even with a higher price. In this scenario, giving a lower price to this segment can lead to higher overall revenue for the company because it maximizes the total amount customers are willing to pay without significantly reducing the quantity sold.
The correct answer to the question is 'B. has a relatively inelastic demand' because this group's demand is less responsive to price changes. Hence, they receive a lower price under price discrimination strategies.