Please answer fast A profit-maximizing shop in a town has a constant marginal cost of $10 and can sell to two types of customers: students and non-students. The shop faces a demand by students given by QS = 50‒P and a demand by non-students given by QN = 190‒3P. Which price would students pay under uniform pricing? Which price would students pay if the seller could successfully engage in price discrimination?

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Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.