Air Shangrila sells to both tourist and business travelers on
its single route. Tourists always stay over on Saturday nights,
while business travelers never do. The weekly demand function of
tourists is
QdT=6,000−10P,
and the weekly demand function of business travelers is
QdB=3,000−4P.
Let the marginal cost of a ticket be $200. Suppose Air Shangrila
has scheduled only 1,329 seats per week on its route.
Instructions: Round your quantities to the nearest
whole number and prices to 2 decimal places.
a. How many of those seats should it sell to tourists and business
travelers, respectively?
Qtourist = seats.
Qbusiness =
seats.
b. What will its prices be?
Ptourist = $.
Pbusiness =
$.
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