Economics 9708 · AS & A Level · 7.8

7.8 — practice question

Rather than setting one uniform price for all customers, a firm chooses to charge different prices in separate markets. What effect is this likely to have on consumer surplus and the firm's marketing costs?

  • Aconsumer surplus decrease; marketing costs decrease
  • Bconsumer surplus decrease; marketing costs increase
  • Cconsumer surplus increase; marketing costs decrease
  • Dconsumer surplus increase; marketing costs increase

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI