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 24 = 3,000 - 5P, and the weekly demand function of business travelers is Q = 4,000 - 4P. Let the marginal cost of a ticket be $150. Suppose Air Shangrila has scheduled only 1,358 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= Qbusiness b. What will its prices be? Ptourist = $ Pbusiness = $ seats. seats.

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 24 = 3,000 - 5P, and the weekly demand function of business travelers is Q = 4,000 - 4P. Let the marginal cost of a ticket be $150. Suppose Air Shangrila has scheduled only 1,358 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= Qbusiness b. What will its prices be? Ptourist = $ Pbusiness = $ seats. seats.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 10PA

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