Find the total customer surplus based on the two-price

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Reference no: EM133264924

Question: Teascent is selling candles in Pleasantville. The incremental costs of wax, wick, and other materials for a candle are $0.80. The daily price-response function in Pleasantville is d(p) = 11000 - 980p. Teascent practices price differentiation and sells its candles for $5 to price-sensitive customers with coupons, and for $7 to quality-seekers.

A: Find Teascent's daily total contribution based on the two-price policy.

B: Find the total customer surplus based on the two-price policy.

Reference no: EM133264924

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