Which of the following does not arise from price discrimination?
A)an increase in producer surplus
B)an increase in consumer surplus
C)an increase in quantity sold
D)an increase in profits

Question

Quizplus · Accepted Answer

Price discrimination typically generates an increase in producer surplus, quantity sold, and profits, but it does not necessarily result in an increase in consumer surplus. In some cases, consumers who are unable or unwilling to pay higher prices may be excluded from the market, which reduces their surplus. However, if price discrimination allows firms to charge lower prices to price-sensitive consumers and still charge higher prices to less price-sensitive consumers, then it is possible to increase consumer surplus as well.

Which of the Following Does Not Arise from Price Discrimination