What is the entrance fee and price of beer for club owner

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Assignment:

Economics

The owner of the school club is faced with student customers and ordinary customers.

Assume that the demand curve (qs) of individual students for beer and the demand curve (qs) of ordinary customers are: the number of students' customers is equal to the number of ordinary customers.

qs=18-3P

qa=10-2P

The marginal cost of beer is fixed at $2

a. Now suppose the club owner charges an extra entrance fee. Thanks to the latest technology, students can only pay admission fees if their student ID cards are displayed at the time of admission. What is the entrance fee and the price of each beer for the club owner?

b. If club owners are unable to distinguish between students and ordinary customers, how are tickets and each beer priced?

c. In each of the above cases, compare consumer surpluses with supplier surpluses and total social benefits. Please answer these three questions. Thank you very much. I'll give you a big thumb.

Reference no: EM133255756

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