From an initial examination,price discrimination may not seem like a social good because ________ is transferred from consumer to producer,but the overall benefit for society ________.
A) deadweight loss; decreases
B) deadweight loss; increases
C) market power; multiplies
D) surplus; decreases
E) surplus; increases

Question

Quizplus · Accepted Answer

Price discrimination, when done efficiently, results in an increase in surplus, which benefits both producers and consumers. While some surplus is transferred from consumers to producers, overall surplus increases, leading to a social benefit. Therefore, option E, where surplus increases, is the best choice.

From an Initial Examination,price Discrimination May Not Seem Like a Social