Figure 16-1
-Refer to Figure 16-1.What is the price charged under perfect price discrimination?
A)P3
B)P4
C)a range of prices corresponding to the demand curve from P3 and above
D)a range of prices corresponding to the demand curve from P4 and above

Question

Figure 16-1 
-Refer to Figure 16-1.What is the price charged under perfect price discrimination?
A)P3 
B)P4 
C)a range of prices corresponding to the demand curve from P3 and above 
D)a range of prices corresponding to the demand curve from P4 and above

Quizplus · Accepted Answer

Under perfect price discrimination, the seller charges each customer their willingness to pay, which varies across the demand curve. In this case, the demand curve starts at P3 and continues upward, so the seller would charge a range of prices corresponding to the demand curve from P3 and above. Therefore, the correct answer is C.

Figure 16-1 -Refer to Figure 16-1.What Is the Price Charged Under Perfect