Perfect price discrimination

A) would maximize consumer surplus.
B) would eliminate consumer surplus.
C) would have only a small effect on consumer surplus.
D) would have no effect on consumer surplus.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed, extracting maximum consumer surplus.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Maximize

To increase or make as large or great as possible, typically used in the context of optimizing outcomes or efficiencies in economics and business.