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7. (1 point) Suppose that students have a demand of Ps=1000-Qs to see movies, but that normal people have a demand of P,=1800-Q, to see

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7. (1 point) Suppose that students have a demand of Ps=1000-Qs to see movies, but that normal people have a demand of P,=1800-Q, to see movies. Assuming a constant marginal cost of 300, what prices should a movie theater charge these 2 different groups if it can engage in 3" degree price discrimination? Do you think this is fair/ethical? Extra Credit: Suppose this form of price discrimination was illegal, so a uniform price was charged to each group. Obviously one would group would benefit and the other would not. But does the combined Consumers' Surplus go up or down

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