You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $1,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customers: Price Adults Children (Dollars) (Tickets) (Tickets) 10 9 50 100 150 200 250 50 4 300 100 300 150 300 200 300 200 300 200 To maximize profit, you would charge for an adult's ticket and for a child's ticket. Total profit in this case would be The city councilt passes a law prohibiting you from charging different prices to different customers. Now you set a price of for all ikets, resulting in profit. Indicate whether each of the following groups of people is better off, worse off, or the same because of the law prohibiting price discrimination. Group of People Better Off Worse Off Unchanged Adults

You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $1,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customers: Price Adults Children (Dollars) (Tickets) (Tickets) 10 9 50 100 150 200 250 50 4 300 100 300 150 300 200 300 200 300 200 To maximize profit, you would charge for an adult's ticket and for a child's ticket. Total profit in this case would be The city councilt passes a law prohibiting you from charging different prices to different customers. Now you set a price of for all ikets, resulting in profit. Indicate whether each of the following groups of people is better off, worse off, or the same because of the law prohibiting price discrimination. Group of People Better Off Worse Off Unchanged Adults

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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