Price Discrimination

Assume some consumers can offer P1, some can offer P2.

No Price discrimination

Producer sell Q1 at P1 for each; Or sells Q2 at P2 for each.

Exercise Price discrimination

Products are sold at P1 without coupon, at P2 with coupon.
For total sell Q2, first Q1 charge P1 each; Q2-Q1 charge P2.

Compared with no discrimination, price discrimination let producer takes consumer surplus shown as shade in the graph.

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