You are a manager of a music academy. The typical consumer’s yearly demand function for piano lessons is given by Q = 80 – 2P. The cost for offering each lesson is $10. Assume that fixed cost is zero. d. Suppose you decide to use non-linear price discrimination instead, charging $30 for the first 20 lessons. If you charge $15 for each additional lesson after that then how many lessons, in total, will be purchased by a typical consumer?

e. Calculate consumer surplus, producer surplus and deadweight loss for the strategy used in part d)