Harrys auto shop is a perfectly price discriminating seller


Harry's Auto Shop is a perfectly price discriminating seller. Harry has an uncanny ability to assess how much people are willing to pay for a car, and he sets prices accordingly.

a. Sketch the demand curve and the marginal cost curve for Harry's Auto Shop.

b. Show the area that represents consumer surplus on the graph you drew for part (a).

c. Show the area of the producer surplus on the same graph.

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Econometrics: Harrys auto shop is a perfectly price discriminating seller
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