Price Elasticity and Price Discrimination

You operate a small but popular and profitable restaurant/bar in a college town. There are several other restaurants and bars nearby. You have conducted a market research study and discovered that the price elasticity of demand for local residents is lower (less elastic) than the price elasticity of demand for college students, who are usually in town only while the college is in session about 9 months out of the year. Discuss at least two pricing strategies you can use to increase your revenues and analyze them in terms of their ability to generate additional profits. Indicate any additional assumptions you are making.

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...pecial discount on showing college ID's whereas charge a premium from local residents by improving its menu and offer more value added services, such as online table booking, mobile ordering, offering innovative and healthy menu offerings and enhancing overall dining ...