Re: ISI PEB (Economics), 2014 ANSWERS 1 TO 5..

Posted by dhruv on Apr 12, 2015; 4:37pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-PEB-Economics-2014-ANSWERS-1-TO-5-tp7595987p7596141.html

While solving 3.(a), we should calculate two profits, one with price discrimination which gives for (i) 532.5, and one without p.d. by combining two demand curves, which gives 525. So, for (i), owner will give discount to students. But for (ii), in order to get same profits, he/she has to discount non-students, which is impossible, so the owner will charge same price for both types of consumer, hence, profit = 525.