Suppose you are a producer that sells products to two groups of buyers. These groups of buyers have no contact with one another. Group 1 has a relatively elastic demand curve and group 2 has a relatively inelastic demand curve. If your goal is to maximize total revenue you should

A. charge both groups the same price
B. charge group 1 a lower price than group 2
C. charge group 2 a lower price than group 1
D. increase the price to both groups

B. charge group 1 a lower price than group 2 

Explanation:

Price discrimination is when a producer charges different prices for the same good to different groups of consumers.

Price discrimination is carried out by producers to maximise total revenue.

Consumers are usually distributed into groups based on their elasticities of demand.

Elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

If price is increased and demand is elastic, the quantity demanded would reduce and total revenue of the seller would fall.

If price is increased and demand is inelastic, there would be no change in quantity demanded and total revenue of the seller would increase.

Thus, in price discrimination, the seller should charge the higher price to the group with the relatively inelastic demand.

I hope my answer helps you

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; be sure that the information on file is correct;