Please note that this question has not yet been graded. I keep getting the error message saying that the question cannot be answered due to it being graded and it hasn't. Thank you. N Course: EC 201 Microeconomic P XMindTap - Cengage Learning XMindTap - Cengage LearningSuccess Confirmation of Question X+←C ✰ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=56960519240215212983351261543&eISBN=9781305648173&snapshotld=2941604&id=148882... Q«KathrynCENGAGE MINDTAPMy HomeHomework (Ch 10)9 CoursesBack to AssignmentAttempte1Keep the Highest 1/37. Changes in net revenue from price discriminationConsider the market for airline tickets on WestEast Airlines from San Francisco to Chicago. The following graph shows the demand curve, marginalrevenue (MR) curve, and marginal cost (MC) curve for this particular flight. In particular, the cost of adding another passenger to an otherwise emptyseat is constant at $160. For simplicity, assume throughout this question that there are no supply constraints caused by seating capacity limitations.Suppose WestEast Airlines sells each seat on the plane for the same price.Place the purple point (diamond symbol) on the graph at the profit-maximizing price and quantity. Dashed drop lines will automatically extend to bothaxes. Then, place the grey rectangle (star symbols) to shade the area representing net operating revenue at the profit-maximizing price and quantity.??400·•Profit Max.320Net RevenueCatalog and Study ToolsRental OptionsCollege Success Tips➡ Career Success TipsRECOMMENDED FOR YOUStudy ToolsStudy Tools for Principles ofEconomics? HelpGive FeedbackFPRICE (Dollars per ticket2401608000Type here to searchMR80120160QUANTITY (Passengers per fight)N40MCDemand200O10C48°F Clear0xKQ Search this course ?X51:33 AM6/13/2022A-Z(A+)O N Course: EC 201 Microeconomic P XMindTap - Cengage Learning XMindTap - Cengage Learning XSuccess Confirmation of Question X+←C ✰ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=56960519240215212983351261543&eISBN=9781305648173&snapshotld=2941604&id=148882... Q«KathrynCENGAGE | MINDTAPMy HomeHomework (Ch 10)9 CoursesVCatalog and Study ToolsSuppose now that WestEast Airlines discovers that business travelers' demand for airline tickets is more inelastic than that of vacationers, retirees,and students. For price discrimination to be implemented, there must be a way of distinguishing between business and nonbusiness customers.Suppose WestEast Airlines successfully segments its market into business travelers and all other travelers by charging higher ticket prices to peoplewho don't stay over a weekend, who spend only a day or two at their destination, or who make reservations a short time before their flight. Thefollowing graph shows the company's demand curve and marginal cost (MC) curve.Rental OptionsCollege Success Tips➡ Career Success TipsRECOMMENDED FOR YOUPoint A indicates the price charged to business travelers ($320) and the number of business travelers (40). Point B indicates the price charged toother travelers ($240) and a total of 80 travelers who would buy tickets at this price if the market were not segmented. However, since businesstravelers purchase tickets for $320, the number of other travelers who would purchase tickets at $240 each is 80-40=40 passengers.Place the purple rectangle (diamond symbols) on the following graph to shade the area representing WestEast Airlines's net operating revenue frombusiness travelers. Then place the green rectangle (triangle symbols) to shade the area representing WestEast Airlines's net operating revenue fromticket sales to other travelers.Study Tools(?)Study Tools for Principles ofEconomics400? Help320Give FeedbackFPRICE (Dollars per ticket)2401608000When WestEast Airlines price discriminates, itN14080120160QUANTITY (Passengers per flight)Type here to searchMCDemandNR BusinessNR Other200its net operating revenue by5:D48°F Clear0xKQ Search this course ?X1:33 AM6/13/2022A-ZbangeO

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Price discrimination occurs when the seller is charging different prices to different consumers for…