To raise money for a group, we are selling women's shirts. total demand for women's shirts comes from two groups: students and working professionals. The demand curves for two groups are represented as:
1. Students: Qs=120-10Ps
(Q sub s=120-10P sub s)
2. working professionals: Qw=48-2Pw
a. We may consider buying from vendor that charges $5 for every women's shirt. What would maximum profits be if we could not set different prices for students and working professionals;
b. When buying from same vendor who charges us $5 for every shirt, what would maximum profits be if we could sell the shirts to students and working professionals at different prices.
This job determines maximum profits in the case.