A movie monopolist sells to college students and other adults. The demand function for students is Q = 1,800-25P, and the demand function for other adults is Q=2,400-25P. The marginal cost is $2 per ticket. Instructions: Round your answers to 2 decimal places. a. What is the effect of price discrimination on consumer and aggregate surplus? CS=$ 42925 AS = $ 128775 b. What is the effect without price discrimination on consumer and aggregate surplus? CS=$ 42025 AS $126075

A movie monopolist sells to college students and other adults. The demand function for students is Q = 1,800-25P, and the demand function for other adults is Q=2,400-25P. The marginal cost is $2 per ticket. Instructions: Round your answers to 2 decimal places. a. What is the effect of price discrimination on consumer and aggregate surplus? CS=$ 42925 AS = $ 128775 b. What is the effect without price discrimination on consumer and aggregate surplus? CS=$ 42025 AS $126075

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A movie monopolist sells to college students and other adults. The demand function for students is
Q = 1,800-25P,
and the demand function for other adults is
Q = 2,400-25P.
The marginal cost is $2 per ticket.
Instructions: Round your answers to 2 decimal places.
a. What is the effect of price discrimination on consumer and aggregate surplus?
CS=$
42925
AS = $ 128775
b. What is the effect without price discrimination on consumer and aggregate surplus?
CS = $ 42025
AS = $126075

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