The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p, cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: 92-87-0.3p2. The total costs for the movie theater depend on the total number of tickets sold, q₁+92, and are given by the following total cost function C(q₁+q₂)=(9₁+9₂)². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. The movie theater's management receives too many complaints from students about the fact that they charge different prices to domestic vs international students, so they are forced to charge the same price to everybody. With this new pricing strategy, what will be the cost of a movie ticket? How many movie tickets does the theater now sell in total?
The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p, cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: 92-87-0.3p2. The total costs for the movie theater depend on the total number of tickets sold, q₁+92, and are given by the following total cost function C(q₁+q₂)=(9₁+9₂)². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. The movie theater's management receives too many complaints from students about the fact that they charge different prices to domestic vs international students, so they are forced to charge the same price to everybody. With this new pricing strategy, what will be the cost of a movie ticket? How many movie tickets does the theater now sell in total?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The movie theater in Glendon has two types of customers: domestic students (group 1) and
international students (group 2). At a price of p, cents, the number of movie tickets that domestic
students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p2 cents, the number of movie
tickets that international students are willing to buy per year is given by: 9₂-87-0.3p₂. The total costs for
the movie theater depend on the total number of tickets sold, 9₁+92, and are given by the following total
cost function C(q₁+92)=(9₁+9₂)².
Suppose that the movie theater can identify which students are domestic and which students are
international, and students are unable to resell movie tickets to each other. This enables the theater to
charge different prices to domestic vs international students.
The movie theater's management receives too many complaints from students about the fact that they
charge different prices to domestic vs international students, so they are forced to charge the same
price to everybody. With this new pricing strategy, what will be the cost of a movie ticket?
How many movie tickets does the theater now sell in total?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42acfe84-127e-4809-817b-d31741f7305e%2F89263e7c-28fa-4ed1-9312-54e7cdea71b2%2F6n1ro4i_processed.png&w=3840&q=75)
Transcribed Image Text:The movie theater in Glendon has two types of customers: domestic students (group 1) and
international students (group 2). At a price of p, cents, the number of movie tickets that domestic
students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p2 cents, the number of movie
tickets that international students are willing to buy per year is given by: 9₂-87-0.3p₂. The total costs for
the movie theater depend on the total number of tickets sold, 9₁+92, and are given by the following total
cost function C(q₁+92)=(9₁+9₂)².
Suppose that the movie theater can identify which students are domestic and which students are
international, and students are unable to resell movie tickets to each other. This enables the theater to
charge different prices to domestic vs international students.
The movie theater's management receives too many complaints from students about the fact that they
charge different prices to domestic vs international students, so they are forced to charge the same
price to everybody. With this new pricing strategy, what will be the cost of a movie ticket?
How many movie tickets does the theater now sell in total?
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