There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student's demand of printing paper is Q=1p, for p<1.The non-student population is 40, and each non-student's demand of printing paper is Q=3p, for p<3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost. Suppose OfficeMax offers a student discount, $1, so students only pay $0.50 and non-students pay the full price, $1.50.

What is the deadweight loss in this situation? What is the deadweight loss if there was no discount and both students and non-students share an optimal price of $1.30?