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