a. What is the effect of price discrimination on consumer and aggregate surplus? CS=$ AS = $ b. What is the effect without price discrimination on consumer and aggregate surplus? CS = $ AS = $

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A movie monopolist sells to college students and other adults. The demand function for students is
Q1,800-25P,
and the demand function for other adults is
Q=2,400-25P.
The marginal cost is $2 per ticket.
Instructions: Round your answers to 2 decimal places.
a. What is the effect of price discrimination on consumer and aggregate surplus?
CS=$
AS = $
b. What is the effect without price discrimination on consumer and aggregate surplus?
CS = $
AS = $
Transcribed Image Text:A movie monopolist sells to college students and other adults. The demand function for students is Q1,800-25P, and the demand function for other adults is Q=2,400-25P. The marginal cost is $2 per ticket. Instructions: Round your answers to 2 decimal places. a. What is the effect of price discrimination on consumer and aggregate surplus? CS=$ AS = $ b. What is the effect without price discrimination on consumer and aggregate surplus? CS = $ AS = $
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