Q1. Due to rising food costs, our vending contractor, Royalle Vending, will implement a slight price increase on all carbonated drinks from $1.25 to $1.50 beginning this fall 2012 semester at all campuses. This is the first time since Royalle Vending was awarded the contract in January 2010 that the company has implemented any price increases. The price of bottled water will remain unaffected at $1.25.
Q2. Fred's Fashion Accessories of New Jersey produces jewelry for sale in Boston and New York subject to total cost TC = 100 + 5(QLA + QSF). Demand for Fred's jewelry in the two cities is given by QLA = 70 - 2PLA and QSF = 55 - PSF. If Fred price discriminates between the two cities, how many stones will it sell in Boston?