A movie monopolist sells to college students and other adults. The demand function for students isQ1,800-25P,and the demand function for other adults isQ=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 = $

Answered: a. What is the effect of price…

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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