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For this question the answer is b which is the TR of group 2. If price is the same, my question is why isn't the demand function of group 1 considered? Why is the TR of group 1 omitted?


To sell 45 units to group 2 implies a price of $220-2Q_2=130$. At that price, demand from group 1 is zero. Indeed, the very most any consumer in group 1 is willing to pay is $100$.

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  • $\begingroup$ I see. So we have to first deduce the willing to pay price and then work out TR after? Thanks $\endgroup$ – onetwothree May 20 '19 at 22:59
  • $\begingroup$ Please could I have some hints on this question also? economics.stackexchange.com/questions/29444/… I would really appreciate it as it is hard to get help from my teachers. Thanks. $\endgroup$ – onetwothree May 20 '19 at 23:11

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