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What is the likely effect of this strategy on profits and consumer surplus compared to charging only a single price? Profits increase and consumer Surplus decreases, because with this pricing strategy the firm will be able to extract more surplus from consumers

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What is the likely effect of this strategy on profits and consumer surplus compared to charging only a single price? Profits increase and consumer Surplus decreases, because with this pricing strategy the firm will be able to extract more surplus from consumers. Profits decrease and consumer surplus increases, because this pricing strategy provides more choice for consumers which is costly for the fiem. O Profits increase but consumer surplus remains the same, because with this strategy the firm will be able to extract all extra surplus from consumers. Both profits and consumers surplus will increase, because the strategy will attract more consumers and the firm will able to extract part of this extra consumer surplus O None of the other answers is correct.