Figure 16-1

-Refer to Figure 16-1.What is the consumer surplus received under perfect price discrimination?
A)the area under the demand curve above P₁
B)the area under the demand curve above P₃
C)the area under the demand curve above P₄
D)zero

Question

Figure 16-1
 
-Refer to Figure 16-1.What is the consumer surplus received under perfect price discrimination?
A)the area under the demand curve above P₁ 
B)the area under the demand curve above P₃ 
C)the area under the demand curve above P₄ 
D)zero

Quizplus · Accepted Answer

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

Figure 16-1 -Refer to Figure 16-1.What Is the Consumer Surplus Received Under