When she is able to distinguish the two groups,Elizabeth finds it profit-maximizing to charge a higher price to the Type A who have a less elastic demand at any price. 650 400 240260 -Q 52 Figure 11.6.c d.What would EA's profit be for each flight?Would she stay in business? Calculate the consumer surplus of each consumer group.What is the total consumer surplus? With price discrimination,total revenue is (90)(250)+(110)375)=$63,750 Totalcostis 41,000+(90+110(100)=$61,000 Profits per flight are 元=63,750.61,000=$2,750. Consumer surplus for Type A travelers is (0.5650-375110)=$15,125. Consumer surplus for Type B travelers is 0.50(400-250(90)=$6,750 Total consumer surplus is $21.875. When she is able to distinguish the two groups, Elizabeth finds it profit-maximizing to charge a higher price to the Type A travelers, i.e., those who have a less elastic demand at any price. 260 520 400 650 Q P 240 Figure 11.6.c d. What would EA’s profit be for each flight? Would she stay in business? Calculate the consumer surplus of each consumer group. What is the total consumer surplus? With price discrimination, total revenue is (90)(250) + (110)(375) = $63,750. Total cost is 41,000 + (90 + 110)(100) = $61,000. Profits per flight are  = 63,750 - 61,000 = $2,750. Consumer surplus for Type A travelers is (0.5)(650 - 375)(110) = $15,125. Consumer surplus for Type B travelers is (0.5)(400 - 250)(90) = $6,750 Total consumer surplus is $21,875