Suppose jen is the only supplier of both coffee and donuts


Suppose Jen is the only supplier of both coffee and donuts in Smalltown. The cost of producing the goods is zero. Jen sells coffee for $3 and donuts for $3. In a typical hour, 5 costumers buy just one coffee, 4 buy just one donut, and 3 costumers buy one of each. The owner finds that those who buy only coffee would also buy a donut if the donut were $2. And those who buy only a donut would also buy coffee if the coffee were $1. If he is considering offering a coffee + donut bundle, so that consumers could buy either just coffee, just donuts, or both of them bundled together, what price for the bundle will maximize his profits?

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Basic Computer Science: Suppose jen is the only supplier of both coffee and donuts
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