I have my test in 2 days and this problem came from a practice test:
Demand curve for consumer 1 = Q = 60,000 - 5000P if P<= 12 and 0 if P>12
Demand curve for consumer 2 = Q = 20,000 - 5000P is P <=4 and 0 if P>4
1. Suppose the firm wants to maximize its revenue only to the high income consumers, What price should it charge?
2. Derive the Total market demand curve for the product by both consumers.
3. What price should the firm charge if it wants to maximize total revenue from the sale of its product to both consumers.
I appreciate any help, even If you can only answer 1 of them.
Demand curve for consumer 1 = Q = 60,000 - 5000P if P<= 12 and 0 if P>12
Demand curve for consumer 2 = Q = 20,000 - 5000P is P <=4 and 0 if P>4
1. Suppose the firm wants to maximize its revenue only to the high income consumers, What price should it charge?
2. Derive the Total market demand curve for the product by both consumers.
3. What price should the firm charge if it wants to maximize total revenue from the sale of its product to both consumers.
I appreciate any help, even If you can only answer 1 of them.