Question

Barbers give a price discount to kids. According to price discrimination, if barbers use price discrimination, this implies demand for hair cuts by kids is more elastic. a. True b. False

Answer 1

a. True

Step-by-step explanation:

Since in the given situation, it is mentioned that the barbers give high discount to the kids, Now in the case of price discrimination when barber used this strategy so it shows that the demand of the hair cust would be more elastic as it earned high profits as compared when he dont use this strategy as this shows the less profits earlier

So the given statement is true