a student - run latte stand at the center of campus serves two types of customers students and professors there  are 500  students and 30 professors at the college. each student's reservation price for a latte is $2 wach professor's reservation price for a latte is $5 each individual buys  one latte per day . the latte stand marginal cost of producing a latte is constant at $1 suppose  the latte stand can't prce-discriminate . if it chnages $2  per latte the consumer surpus will be per  and the producer surpus  will per day.  suppose now that the latte stand can price  discriminate if it changes students  who must show their student ids $2  and  professors $5  the consumer surpus will be  per day and  the producer surpulus will be per day A.0;530;90;530 b.0;0;0;620 c.90;0;0;90;530 d. 90;530;30;620

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

a student - run latte stand at the center of campus serves two types of customers students and professors there  are 500  students and 30 professors at the college. each student's reservation price for a latte is $2 wach professor's reservation price for a latte is $5 each individual buys  one latte per day . the latte stand marginal cost of producing a latte is constant at $1 suppose  the latte stand can't prce-discriminate . if it chnages $2  per latte the consumer surpus will be per  and the producer surpus  will per day.  suppose now that the latte stand can price  discriminate if it changes students  who must show their student ids $2  and  professors $5  the consumer surpus will be  per day and  the producer surpulus will be per day

A.0;530;90;530

b.0;0;0;620

c.90;0;0;90;530

d. 90;530;30;620

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education