Problem:
You own a theater with 200 seats. The demand for seats is Q = 300 - 100P. You are charging $1.25 per ticket and selling tickets to 175 people. Your costs are fixed and do not depend on the number of people attending. Should you:
a) Cut your price to fill the theater.
b) Keep your price the same.
c) Raise your price.
d) Not enough information.
Explain your answer.