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4. Bear's Smokehouse BBQ in downtown Hartford serves three kinds of customers, kids, UConn students, and townie adults. There are 15,000 kids, 10,000 UCon students

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4. Bear's Smokehouse BBQ in downtown Hartford serves three kinds of customers, kids, UConn students, and townie adults. There are 15,000 kids, 10,000 UCon students and 25,000 townie adults in downtown Hartford. Each kid's willingness to pay for a meal is $5. Each UConn student's willingness to pay for a meal is $10. Each adult's willingness to pay for a meal is $20. Each will buy at most one meal. Bear's BBQ's marginal cost per meal is constant at $4 and there is no fixed cost. All meals are identical. (20 points) a. Suppose that Bear's BBQ cannot price-discriminate and needs to charge kids, UConn students and townie adults the same price per meal. If Bear's BBQ charges $8, who will buy meals and what will Bear's BBQ's profit be? How large is consumer surplus? b. If Bear's BBQ charges $20, who will buy meals and what will Bear's BBQ's profit be? How large is consumer surplus? e. Now suppose that, if it chooses to, Bear's BBQ can price-discriminate between kids, UConn students and townie adults by creating a "kids meal" (which is just the same meal in a different box) and only allowing kids to buy the kids meal and a "Husky Meal" that requires a UConn student ID. to purchase. Anyone who is not a kid or a UConn student must buy an adult meal. If Bear's BBQ charges $5 for the kids meal, $10 for the Husky Meal and $20 for the adult meal, how much profit will Bear's BBQ make? How large is consumer surplus

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