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the manufacturer of the arthritis drug Lodine [as been criticized] for selling it for $108 a month when prescribed for humans and $38 when prescribed

"the manufacturer of the arthritis drug Lodine [as been criticized] for selling it for $108 a month when prescribed for humans and $38 when prescribed for dogs." (The NYTimes 2000). Which of the following statements is accurate?

  • If under single price scenario the dog owners could not afford to buy the drug, this type of price discrimination increases consumer surplus.
  • If under single price scenario the dog owners could not afford to buy the drug, the consumer surplus of all groups do not change..
  • The practice of this type of price discrimination reduces the consumer surplus of all groups.
  • The practice of this type of price discrimination increases the consumer surplus of all groups.

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