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a Suppose Pepper is a student and thus has a student card, and the other two customers do not. In this case the firm it

a Suppose Pepper is a student and thus has a student card, and the other two customers do not. In this case the firm it is possible for the firm to offer separate prices for students and non-students. Find the profit maximising prices.

b Now consider the case in which Sam and Pepper are both students, but Wanda does not. In this case the firm could also offer separate prices for students and non-students. Find the profit maximising prices.

c Provide an explanation for the difference in profit you found in part a and part b?

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