Hi, thanks in advance!

St Lucia bakery is famous for its bread rolls. It sells each bread roll for 50 cents, or 12 bread rolls for $5.Currently they are able to produce 500 bread rolls a day and sell them all within 3 hours of opening.

1. The bakery is using second degree price discrimination since the price per bread roll is different when purchasing just a single roll compared to buying 12 at a time.
2. The bakery is not using first degree price discrimination when selling single bread rolls as all customers pay exactly the same price of 50c.
3. By using price discrimination, the bakery is able to convert consumer surplus into producer surplus.

Which of the above statements are true:

Only 1 is true.

Only 2 is true.

Both 1 and 2 are true.

Both 2 and 3 are true.

All three are true.