Use this link to answer the question https://docs.google.com/document/d/1rD1gqj41HDfnVIUIi0aw6VZvMeigfgUE6QeqklGVJ9s/edit?usp=sharing

1. Assume the data below on price and quantity demanded is for the same college, now graph the college's demand curve and show in your diagram how market segmentation (2 groups-scholarship and non-scholarship) yields increased tuition revenues. How might you further segment this market to increase revenues? Explain.

SCHOOL A SCHOOL B SCHOOL C No merit Everyone Merit aid aid receives a for most scholarship FULL PRICE Paying 750 0 100 students students DISCOUNTED RATE Paying 0 900 students 1,000 x $50,000 x $45,000 x $40,000 or 0% or 10% or 20% discount discount discount $37.5m $40.5m $45m TOTAL REVENUE, IN MILLIONS