Price discrimination leads to a _____ price for consumers with a _____ demand.

A) higher;less elastic
B) higher;more elastic
C) higher;perfectly elastic
D) lower;less elastic

Price discrimination is the practice of charging different prices to different customers for the same good or service. When firms engage in price discrimination, they are able to charge a higher price to customers with less elastic demand because these customers are less likely to be deterred by higher prices. Conversely, firms are forced to charge a lower price to customers with more elastic demand because these customers are more sensitive to changes in price and are more likely to switch to a substitute product if the price of the original good or service becomes too high. Therefore, price discrimination leads to a higher price for consumers with less elastic demand.