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3. (5 points) Three consumers who want to buy a computer and a printer have the following valuations for options offered by the store: Laptop

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3. (5 points) Three consumers who want to buy a computer and a printer have the following valuations for options offered by the store: Laptop Printer Bundle Consumer 1 $800 $100 $900 Consumer 2 $1,000 $50 $1,050 Consumer 3 $600 $150 $750 (a) Assume that the dealer can charge only individual prices, one price for laptops and one price for the printer. The goods are sold individually and are not bundled together, and any of the consumers may purchase either one or both goods separately. The store does not charge each consumer the price they are willing to pay but must charge the same price for all laptops and the same price for all printers. What prices will the store charge for each item separately to maximize its total revenue from these three consumers, and what will be its total revenue? Please explain. (b) Suppose that the store bundles laptops and printers together and sells them as a bundle and does not sell them separately any longer. The consumers can no longer buy the goods separately, they will either have to buy a bundle containing both goods or buy nothing. The prices that the consumers are willing to pay for the bundle are gives in the above table. What bundle price will maximize the dealer's revenue? Please explain. (c) Does bundling in (b) give higher revenues than selling individually in (a)

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