You have been put in charge of ASU Gammage Auditorium. The market for ticket sales is made up of both students and nonstudents. You have determined the students' demand curve for ticekts is given by P=17-0.15Q while the demand for nonstudents is P=20 - 0.1Q
a) At a price of $11, what is the market Quantity demanded?
b) Suppose you are currently charging $5 per ticket to both students and nonstudents. Calculate the price elasticity of demand for students associated with a change in the ticket price from $5 to $6 (Do not use the midpoint method to calculate this elasticity).
c) Explain two factors the might influence the price elasticity of demand.
d) Suppose you are currently charging $5 per ticket to both students and nonstudents. If your objective is to increase you revenue (price x quanitity), should you increase, decrease or maintain the price that students pay? Should you increase, decrease or maintain the price that nonstudents pay? Explain.