1. When price discrimination occurs, the producer's profit is _____ if the producer charges each customer the same profit-maximizing price where marginal revenue equals _____ cost.
more than; marginal
the same as; marginal
the same as; average total
less than; marginal
2. Airlines that engage in price discrimination charge higher prices to business travelers because their _____ is more _____ than that of other travelers.
supply; elastic
demand; inelastic
supply; inelastic
demand; elastic