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Answer :
A price-discriminating monopolist tends to charge a lower price to senior citizens when it believes their demand is more elastic compared to other demanders. The option (B) is correct.
Elastic demand means that consumers are more responsive to changes in price, resulting in larger changes in quantity demanded relative to changes in price. By charging a lower price to senior citizens (assuming their demand is more elastic), the monopolist can capture more of the senior citizen market share and increase overall revenue. This strategy exploits the willingness of senior citizens to purchase more at lower prices, maximizing the monopolist's profit.
In contrast, if other demanders have less elastic demand (more inelastic), they are less sensitive to price changes and can be charged a higher price without significant loss of demand. Therefore, adjusting prices based on the elasticity of demand among different consumer groups allows the monopolist to optimize pricing strategies and revenue generation. Therefore, option (B) is correct.
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