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Unformatted text preview: maximizing prices, quantities, consumer plus producer surpluses? Q5. Assume price discrimination is not possible for Sarabeth Tucek. What is her profit maximizing price, quantity, consumer and producer surplus (hint : you must construct Sarahbeth’s aggregate (kinked) demand curve from the horizontal sum of the individual demand curves for adults and non-adults which gives P = 133.33 – (1/3)Q for prices less than 100 and P = 200 – Q for prices above 100)? Does price discrimination increase welfare?...
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This note was uploaded on 04/22/2009 for the course GEOL 1010 taught by Professor Pranter,ma during the Spring '07 term at Colorado.
- Spring '07