-The above figure shows the market for a particular good.If the market is controlled by a perfect-price-discriminating monopoly,compared to a perfectly competitive market,the change in consumer surplus is
A)A.
B)A + B + C.
C)A + B + C + D + E.
D)zero.

Question

-The above figure shows the market for a particular good.If the market is controlled by a perfect-price-discriminating monopoly,compared to a perfectly competitive market,the change in consumer surplus is
A)A. 
B)A + B + C. 
C)A + B + C + D + E. 
D)zero.

Quizplus · Accepted Answer

In a perfect-price-discriminating monopoly, the monopolist captures all consumer surplus, converting it into producer surplus. Thus, the change in consumer surplus is the loss of areas A, B, and C, which were part of the consumer surplus under perfect competition.

-The Above Figure Shows the Market for a Particular Good