A movie monopolist sells to college students and other adults. The demand function for students is Q = 1,000 – 25P, and the demand function for other adults is Q% = 1,600 – 25P. The marginal cost is $4 per ticket (instead of $2 per ticket, as in the Worked-Out Problem). Instructions: Round your answers to 2 decimal places. a. What is the effect of price discrimination on consumer and aggregate surplus? CS = $ 15300 AS = $ 45900 b. What is the effect without price discrimination on consumer and aggregate surplus? CS = $ 23400 AS = $ 52200
A movie monopolist sells to college students and other adults. The demand function for students is Q = 1,000 – 25P, and the demand function for other adults is Q% = 1,600 – 25P. The marginal cost is $4 per ticket (instead of $2 per ticket, as in the Worked-Out Problem). Instructions: Round your answers to 2 decimal places. a. What is the effect of price discrimination on consumer and aggregate surplus? CS = $ 15300 AS = $ 45900 b. What is the effect without price discrimination on consumer and aggregate surplus? CS = $ 23400 AS = $ 52200
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 20SQ
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![A movie monopolist sells to college students and other adults. The demand function for students is
= 1,000 – 25P,
and the demand function for other adults is
= 1,600 – 25P.
The marginal cost is $4 per ticket (instead of $2 per ticket, as in the Worked-Out Problem).
Instructions: Round your answers to 2 decimal places.
a. What is the effect of price discrimination on consumer and aggregate surplus?
CS= $ 15300
AS = $ 45900 O
b. What is the effect without price discrimination on consumer and aggregate surplus?
CS = $ 23400
AS = $ 52200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d082214-7faf-4d20-b0cd-e81ead37f243%2Fd211c904-d2d6-4cc4-a46c-f2fa051aed40%2Fp6xw1e_processed.png&w=3840&q=75)
Transcribed Image Text:A movie monopolist sells to college students and other adults. The demand function for students is
= 1,000 – 25P,
and the demand function for other adults is
= 1,600 – 25P.
The marginal cost is $4 per ticket (instead of $2 per ticket, as in the Worked-Out Problem).
Instructions: Round your answers to 2 decimal places.
a. What is the effect of price discrimination on consumer and aggregate surplus?
CS= $ 15300
AS = $ 45900 O
b. What is the effect without price discrimination on consumer and aggregate surplus?
CS = $ 23400
AS = $ 52200
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