The theme park owner performs some market research and determines that his customers can best be represented
Question:
The theme park owner performs some market research and determines that his customers can best be represented by the following model.
i. Base customer demand for each day of the week is linear and is specified by the parameters in Table 7.4.
ii. Weekend (Saturday and Sunday) customers will switch to the other weekend day at the rate of 10 customers for every $1 difference in price. They will not switch to weekdays at any price.
iii. Weekday customers will switch to any other day (including a weekend day) at the rate of 8 customers for every $1 difference in price.
What are the optimal daily prices the theme park should charge?
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