Why, from an Economic Perspective, Is Price Discrimination Desirable

Multiple Choice

Why, from an economic perspective, is price discrimination desirable?

A) The increase in profits is more than offset by the loss in consumer surplus, resulting in a net increase in economic surplus.
B) It enables firms to increase profits with no loss in economic surplus, and in turn, this could provide firms with incentives to engage in beneficial product innovation.
C) The increase in profits results in higher corporate tax revenues received by the government, which could be used to subsidise consumption for low-income individuals.
D) It redistributes wealth from wealthy consumers to highly innovative firms.