Suppose that a price-discriminating firm divides its market into two segments. if the firm sells its product for a price of $22 in the market segment where demand is relatively less elastic, the price in the market segment whose customers' demand is more elastic will be

The correct answer is: less than $22.

Explanation:

Price discrimination is a situation where a firm charges different prices for the same product. Different price is charged generally from consumers with different price elasticities.  

A firm charges a higher prices from the consumer with lower price elasticity because with a higher price there demand will decrease less than proportionate.

Lower price is charged from consumers having a higher price elasticity of demand because these consumers will decrease their demand more than proportionate at a higher price.  

So if a firm charges $22 in the market segment with less elastic demand, the price in the more elastic market segment will be lower than $22.

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