To accomplish his price discrimination, Arturo should give discount coupons for his yogurt to D. Students at the local art school.
Price discrimination will help Arturo charge the highest price to those who prefer organic food because they exhibit inelastic demand. They include members of the local organic food cooperation, people who come to the community's weekly farmer's market, and customers of the local fast-food restaurant.
Thus, students at the local art school require lowered prices to patronize Arturo's organic frozen yogurt.
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Answer:
B. Customers of the local fast-food restaurant
Explanation:
Inelastic demand is when a buyer's demand for a product does not change as much as its change in price.
Answer choices:
A. Members of the local organic food co-op
B. Customers of the local fast-food restaurant
C. Students at the local art school
D. People who come to the community's weekly farmer's market
A. Members of the local organic food co-op and D. People who come to the community's weekly farmer's market are similar. If people are already buying organic foods, they are more likely to be elastic when the price changes meaning they will find a substitute.
C. Students at the local art school is incorrect because the students would look for substitutes when the price increases after discounts.
B. Customers of the local fast-food restaurant is the most likely group to keep buying the organic yogurt to stay healthy even when the price increases.
