-Which area in the above figure equals the consumer surplus under perfect price discrimination?
A) A + B + C + D + E + F + G + H
B) A + B + C + D + E
C) A + B
D) There is no consumer surplus.

Question

-Which area in the above figure equals the consumer surplus under perfect price discrimination?
A) A + B + C + D + E + F + G + H 
B) A + B + C + D + E 
C) A + B 
D) There is no consumer surplus.

Quizplus · Accepted Answer

Under perfect price discrimination, the producer captures all the consumer surplus by charging each consumer their maximum willingness to pay, leaving no consumer surplus.

-Which Area in the Above Figure Equals the Consumer Surplus