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maximum profits

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.

Solution Summary

This job determines maximum profits in the case.