Consider the demand for schnitzel in the diagram below Suppo

Consider the demand for schnitzel in the diagram below. Suppose that there is a single seller of schnitzel, who acts as a single-price monopolist. Suppose the seller begins perfectly price-discriminating. What areas that used to be consumer surplus now become producer surplus?
	B E A A + B

Solution

Monopoly without price discrimination produces at MR=MC ;That is it produces Q1 and charges price P1

.Consumer surplus=A+B at P1 and Q1.

If monopoly becomes perfectly price discriminator,it charges each consumer exactly his willingness to pay.So there will be no consumer surplus fo any buyer.

Hence area (A+B) which was used to consumer surplus now becomes producer surplus.