Suppose the movie theater has two types of customers: college students and senior citizens. College students have a willingness to pay $20 and senior citizens have a willingness to pay $5. The theater potentially has 10 college students and 20 senior citizen customers. The movie theater incurs no cost when showing the movie, so profit is the same as revenue. How does total surplus change if the movie theater goes from charging a single price to perfectly price discriminating?

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