The WaveHouse on Mission Beach in San Diego features the Bruticus Maximus, a ten foot wave, which tests the skills of even the most talented surf and wake board riders on the planet. WaveHouse is the only place in San Diego where this service is offered. You can ride B. Max for $40 for the first hour, $33 for the second hour, and $26 for the third hour. An effect of this price discrimination is that:
A) Consumer surplus increases.
B) Deadweight loss increases.
C) Consumer surplus is completely eliminated.
D) Producer profit increases.

Question

Quizplus · Accepted Answer

Price discrimination allows the producer to capture more consumer surplus, converting it into additional profit, thus increasing producer profit.

The WaveHouse on Mission Beach in San Diego Features the Bruticus