Final answer:
In the context of price discrimination, the group with fewer options has a relatively inelastic demand and is thus less sensitive to price changes, allowing businesses to charge them higher prices.
Step-by-step explanation:
In the price discrimination model, the group with fewer options typically has a relatively inelastic demand. This means that the percentage change in demand for their product or service is smaller when compared to a percentage change in price. Consequently, because this group is less sensitive to price changes, businesses often charge them a higher price. Empirically, a demand curve that is inelastic will have an elasticity value of less than one. Therefore, the correct answer to the question is that the group with fewer options B. has a relatively inelastic demand.