As you know we are the only Bubble Tea vendor on the IU Bloomington campus. Right now we are charging a price of $4 per bubble tea to all our customers. However, we have noticed that student demand (Q₁) differs from faculty/staff demand (Q₂), as seen by the given weekly demand curves:

Students: Q₁ = 1,000 - 100P₁

Faculty/Staff: Q₂ = 500 - 100P₂

In an effort to increase our profits we are thinking about lowering prices by 25% to customers that have student ID cards to encourage more sales to students. So I would like you to review our current pricing strategy and let me know if a 25% discount to our students would be profit enhancing. While you are reviewing our pricing strategy, let me now if we can improve our profits from our faculty/staff customers by increasing their price.

In your review, keep in mind that our marginal costs per bubble tea served are $1.