5. (16.5pts) Consider the welfare effects from price discrimination. a. b. E. (2pts) Given that the firm price discriminates, use the information found in part 2 above to calculate the consumer surplus for demand 1. Show your work. (2pts) Given that the firm price discriminates, use the information found in part 2 above to calculate the consumer surplus for demand 2. Show your work. (0.5pts) Add the results from a and b to find the total consumer surplus with price discrimination. Now consider the combined demand. 1. (2pts) Use the "optimal P" for the single market and plug it into demand 1 to find the number of units purchased by type 1 consumers. Use this information to calculate the consumer surplus for type 1 consumers with combined demand. ii. (2pts) Plug this "optimal P" into demand 2 to find the number of units purchased by type 2 consumers. Use this information to calculate the consumer surplus for type 2 consumers with combined demand. iii. (0.5pts) Add the results from i and ii to find the total consumer surplus without price discrimination. (1pt) Summarize your results in the table below. - No Price Discrimination EE - _ P'Q'Q Compare the results: i. (1pt) How do type 1 consumers fare with price discrimination? Explain. ii. (1pt) How do type 2 consumers fare with price discrimination? Explain. iii. (1pt) Overall how does consumer surplus change with price discrimination? Explain. Calculate the change. (1.5pts) How much does the total profit increase with price discrimination? (2pts) Using the information from f and g, what is the effect on aggregate surplus? Explain and calculate the change