3. Third-Degree Price Discrimination. Suppose that Coca-Cola uses a new type of vending machine that charges a price according to the temperature outside. On "hot" days demand is Q=16002P. On "cool" days the demand is Q=12002P. The marginal cost of one bottle of Coca-Cola is 40(MC=40). Suppose 1/2 the days are "hot" and the other 1/2 are "cool". 1. Are consumers better off with or without price discrimination? Explain and support your answer mathematically. 2. Are producers better off with or without price discrimination? Explain and support your answer mathematically. 3. Is this market more efficient with or without price discrimination? Explain and support your answer mathematically. 3. Third-Degree Price Discrimination. Suppose that Coca-Cola uses a new type of vending machine that charges a price according to the temperature outside. On "hot" days demand is Q=16002P. On "cool" days the demand is Q=12002P. The marginal cost of one bottle of Coca-Cola is 40(MC=40). Suppose 1/2 the days are "hot" and the other 1/2 are "cool". 1. Are consumers better off with or without price discrimination? Explain and support your answer mathematically. 2. Are producers better off with or without price discrimination? Explain and support your answer mathematically. 3. Is this market more efficient with or without price discrimination? Explain and support your answer mathematically