There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student's demand of printing paper is Qs, = 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 Melboume Assume zero production cost. a. Suppose OfficeMax offers a student discount, d, so students only pay d*p and non-students pay the full price, What are the profit maximizing price p and discount d? b. 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?
There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student's
a. Suppose OfficeMax offers a student discount, d, so students only pay d*p and non-students pay the full
b. 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?
c. Suppose OfficeMax 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.
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