It turns out that introducing lower prices for the weekend induces some customers with great flexibility (such
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It turns out that introducing lower prices for the weekend induces some customers with great flexibility (such as retirees) to move some of their demand from the higher- priced midweek days to the lower- priced weekend days. An analysis shows that ten customers are likely to shift from midweek to weekend for every dollar in price difference between the two periods. What are the optimal variable prices now?
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