Which of the following scenarios best exemplifies third-degree price discrimination, and what effect does it have on producer surplus?

Third-degree price discrimination happens when a company charges different prices to different groups of customers based on their willingness to pay. For example, a movie theater might charge children a lower ticket price than adults. This strategy allows the theater to attract more families while still making money from adults who are willing to pay more. As a result, the theater can increase its producer surplus, which is the extra money it makes above its costs, because it captures more revenue from those who can afford to pay higher prices. Overall, this type of pricing helps the business maximize its profits by serving different customer segments effectively.