What happens to areas e and h when the seller begins, Econometrics

What happens to areas e and h when the seller begins

Consider the demand for schnitzel in the diagram below. Suppose that there is a single seller of schnitzel, who acts as a single-price monopolist.

a. Indicate the profit-maximizing price and quantity.

b. List the areas of consumer and producer surplus.

c. Suppose the seller begins perfectly price discriminating. How many schnitzels will she sell?

d. What happens to areas A and B when the seller begins perfectly price discriminating?

e. What happens to areas E and H when the seller begins perfectly price discriminating?

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Econometrics: What happens to areas e and h when the seller begins

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