Total Consumption Increases Without Price Discrimination

In the absence of price discrimination:

poorer consumers are better off.

prices will always fall.

total output will be less.

total consumption of the good will be higher.

In the absence of price discrimination, the most accurate statement is:

total consumption of the good will be higher.

When price discrimination is not present, a single price is charged to all consumers, which can lead to a larger market size and increased total consumption compared to a scenario where different prices are charged to different consumer segments. This is because a uniform price can make the good accessible to a broader range of consumers, including those who may not be able to afford higher prices.

The other statements do not necessarily hold true in the absence of price discrimination:

• Poorest consumers are better off: This is not guaranteed, as a single price may still be too high for some poorer consumers.
• Prices will always fall: Prices may not necessarily fall; they could remain the same or even rise depending on market conditions.
• Total output will be less: This is not necessarily true; total output could increase if more consumers are able to purchase the good at a single price.

Thus, the best conclusion is that total consumption of the good will be higher in the absence of price discrimination.