Leon Redbone, an obscure jazz and blues musician, is now touring the country performing concerts. A careful analysis of demand for tickets to Redbone?s concerts reveals a strange segmentation in the market. He faces separate markets for people over 50 and people under 50. The price p1 is the price set for the over-50?s market and the price p2 is the price set for the under-50?s market. If demand by over-50s is given by Q1 = 7,000 ? 700p1 and demand by under-50?s is given by Q2 = 1,200 ? 200p2, and the marginal cost of a ticket is $2;What price should be charged to over-50's to maximise profits?;What price should be charged to under-50's to maximise profits?
Paper#26933 | Written in 18-Jul-2015Price : $22