A pizza monopolist employing third-degree price discrimination has general customers with an elasticity of demand equal to -1.6 and student customers with an elasticity of demand of -3.45. Students must show their ID before they can get the discount. The marginal cost of this monopolist is $5 whether or not the customer is a student. What should the percentage price discount for students be?

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The Answer of A pizza monopolist employing third-degree price discrimination has general customers with an elasticity of demand equal to -1.6 and student customers with an elasticity of demand of -3.45. Students must show their ID before they can get the discount. The marginal cost of this monopolist is $5 whether or not the customer is a student. What should the percentage price discount for students be?

A Pizza Monopolist Employing Third-Degree Price Discrimination Has General Customers