Consider the market for UNCG tee shirts sold at the bookstore. a.) [5 pts] What conditions...

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Consider the market for UNCG tee shirts sold at the bookstore. a.) [5 pts] What conditions must be satisfied for the bookstore wishes to sell tee shirts to students (S) at a different price than non-students (NS). Do you think those conditions are satisfied in this case? b.) [10 pts] Regardless of your answer to part a, consider the following graphs. Indicate on each graph the price charged to each group, the quantity sold to each group, and the profits/producer surplus earned from each group. Non students Students PNS Ps mc. Ds DNS c.) [5 pts] Use the graph to describe the relationship between "markup" (price-marginal cost) and elasticity. -mc QNE Consider the market for UNCG tee shirts sold at the bookstore. a.) [5 pts] What conditions must be satisfied for the bookstore wishes to sell tee shirts to students (S) at a different price than non-students (NS). Do you think those conditions are satisfied in this case? b.) [10 pts] Regardless of your answer to part a, consider the following graphs. Indicate on each graph the price charged to each group, the quantity sold to each group, and the profits/producer surplus earned from each group. Non students Students PNS Ps mc. Ds DNS c.) [5 pts] Use the graph to describe the relationship between "markup" (price-marginal cost) and elasticity. -mc QNE

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