$,$

a small isolated$$ town, has one

lawyer

$.$

For a

$30$

$-$minute

$$consultation$,$ the

lawyer

charges

a rich person

twice as much as a

poor person

$.$

Does the

lawyer

practice price$$ discrimination? Is the

lawyer

using resources$$ efficiently? Does the

lawyer

$\text{'}$s

pricing scheme redistribute consumer$$ surplus?

Question content area bottom

Part $1$

The

lawyer

$\_\_\_\_\_\_\_$ practicing price discrimination because$\_\_\_\_\_\_\_.$

A$.$

is$$ not; each person is not paying the maximum price that they are willing to pay

B$.$

$$is;

rich people

and

poor people

are paying a different price for the same service

C$.$

is$$ not;

rich people

could travel to another location and pay a cheaper price

D$.$

is$$ not;

rich people

and

poor people

are willing to pay a different price for the same service

E$.$

$$is; all monopolies practise price discrimination

Part $2$

The

lawyer

$\_\_\_\_\_\_\_$ using resources efficiently because$\_\_\_\_\_\_\_.$

A$.$

is$$ not; the sum of consumer surplus and producer surplus is maximized

B$.$

$$is; no deadweight loss is created

C$.$

is$$ not; a deadweight loss is created

D$.$

is$$ not; no deadweight loss is created

E$.$

$$is; the sum of consumer surplus and producer surplus is maximized

Part $3$

This pricing system$\_\_\_\_\_\_\_.$

A$.$

takes some consumer surplus from the

lawyer

and redistributes it to the consumer as economic profit

B$.$

increases consumer surplus

C$.$

takes some consumer surplus from the consumer and redistributes it to the

lawyer

as consumer surplus

D$.$

takes some consumer surplus from the consumer and redistributes it to the

lawyer

as economic profit

E$.$

does not change the amount of consumer surplus