Price discrimination does not allow a producer to
A)Obtain greater total revenue.
B)Charge both higher and lower prices.
C)Obtain higher profits.
D)Designate a point above the market demand curve as the new equilibrium.

Question

Quizplus · Accepted Answer

Price discrimination allows a producer to capture more consumer surplus, which can lead to higher profits and total revenue. However, price discrimination does not allow the producer to designate a point above the market demand curve as the new equilibrium, as the demand curve still determines the maximum total quantity that consumers are willing and able to purchase at any given price.

Price Discrimination Does Not Allow a Producer to