Problem 2. A coffee shop manager realizes that demand for coffee is more elastic among students, and is trying to determine the optimal pricing schedule. Specically, she estimates the following average demands: 0 Student: q3 = 18 5p; 0 Nonstudent: qN = 10 2p. The two groups visit the coffee shop in equal numbers on average. Assume that the marginal cost for coee is $2 and there is no xed cost. 1. If the coffee shop cannot distinguish whether customers are students or not, what is the optimal uniform price pU? 2. Assume that students can buy a cup of coffee with a discounted price p3 by showing their student ID card and nonstudents can buy it with a normal price 'pN. What price should be set for each group? 3. How has price discrimination affected the coffee shop's prot