question archive There are two types of consumers in Melboume: students and non-students
There are two types of consumers in Melboume: students and non-students
Subject:EconomicsPrice: Bought3
There are two types of consumers in Melboume: students and non-students. The student population is 10, and each student's demand of printing paper is 0,= 1 - p, for p < 1. The non-student population is 40, and each non-student's demand of printing paper is QA = 3 - p, for p <3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost. 2.1. Suppose OfficeMax offers a student discount, d, so students only pay dep and non-students pay the full price, p. What are the profit maximizing price p and discount d? (5 points) 2.2. Suppose OfficeMax cannot offer student discounts, and every customer has to pay the same price p. What is the total demand if p=1.5? What is the total demand if p=0.5? (5 points) 2.3. Suppose Office Max cannot offer student discounts, and every customer has to pay the same price p. Derive the aggregate demand curve (for both students and non-students), and illustrate it in a diagram.
