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Consumer surplus was therefore 27500 which is greater

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Consumer surplus was therefore $27,500, which isgreater than the consumer surplus of$21,875 with price discrimination. Although thetotal quantity is unchanged by pricediscrimination,price discrimination has allowed EA to extract consumer surplus frombusiness passengers (Type B) who value travel most andhave less elastic demandthanstudents.
Multiple Choice Questions1) Which of the following strategies are used by business firms to capture consumer surplus?
2) Suppose a firm hasmarket power and faces a downward sloping demand curve for its product,and its marginal cost curve is upward sloping.If the firm reduces its price, then:
3) An electric power company uses block pricing for electricity sales. Block pricing is anexample of
4) A tennis pro charges $15 per hour for tennis lessons for children and $30 per hour for tennislessons for adults. The tennis pro is practicingA) first-degree price discrimination.B) second-degree price discrimination.C) third-degree price discrimination.D) fourth-degree price discrimination.
5) McDonald's restaurant located near the high school offered a Tuesday special for high schoolstudents.If high school students showed their student ID cards, they would be given 50 cents offany medium combination meal.This practice is an example of:
6) Some grocery stores are now offering customers coupons which entitle them to a discount oncertain items on their next visit when they go through the check-out line. This practice is anexample of:

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