**Price Discrimination and Elasticity of Demand**

Price discrimination refers to the practice of charging different prices for the same product or service in different markets or to different customers. The success of price discrimination depends on the elasticity of demand for the commodity in the two markets.

**Elasticity of Demand**

Elasticity of demand is a measure of how sensitive the quantity demanded of a commodity is to changes in its price. It helps to determine the responsiveness of demand to price changes. Elastic demand means that a small change in price leads to a significant change in quantity demanded, while inelastic demand means that a change in price has little effect on quantity demanded.

**Different Elasticity of Demand in Different Markets**

For price discrimination to be successful, the elasticity of demand for the commodity in the two markets should be different. This is because price discrimination relies on the ability to charge a higher price to customers with a relatively inelastic demand and a lower price to customers with a relatively elastic demand.

* **Market A: Inelastic Demand**
If the demand for the commodity in market A is relatively inelastic, it means that customers in this market are less responsive to price changes. They are willing to pay a higher price for the commodity even if the price increases. In this case, the seller can charge a higher price in market A and still maintain a relatively high level of sales because customers are less likely to switch to alternative products or reduce their purchases significantly.

* **Market B: Elastic Demand**
On the other hand, if the demand for the commodity in market B is relatively elastic, it means that customers in this market are more sensitive to price changes. They are more likely to switch to alternative products or reduce their purchases if the price increases. In this case, the seller needs to charge a lower price in market B to attract customers and maintain a reasonable level of sales.

**Conclusion**

In conclusion, price discrimination is successful when the elasticity of demand for the commodity is different in the two markets. By charging different prices based on the elasticity of demand, sellers can maximize their revenue and profit. This strategy allows them to capture the surplus value from customers with a relatively inelastic demand while also attracting price-sensitive customers with a relatively elastic demand. Therefore, option B, different elasticity of demand, is the correct answer.