An airline has two types of passengers: business passengers with fairly tight schedules and inelastic demand for airline flights and vacation passengers with flexible schedules and more elastic demand for airline flights. The tables below show the demand information for both types of passengers and the market demand for a single airline flight.

Business Traveler Demand				Vacation Traveler Demand				Market Demand Same Price for All Passengers
Price (dollars)	Quantity Demanded (seats)	Marginal Revenue (dollars)		Price (dollars)	Quantity Demanded (seats)	Marginal Revenue (dollars)		Price (dollars)	Quantity Demanded (seats)	Marginal Revenue (dollars)
$500	0	—		$500	0	—		$500	0	—
450	25	$400		450	0	—		450	25	$400.00
400	50	300		400	0	—		400	50	300.00
350	75	200		350	50	$300		350	125	266.67
300	100	100		300	100	200		300	200	166.67
250	125	0		250	150	100		250	275	66.67
200	150			200	200	0		200	350	16.67
150	175			150	250			150	425
100	200			100	300			100	500
50	225			50	350			50	575
0	250			0	400			0	650

1. If the airline can charge only one price to all passengers and its marginal cost of supplying a seat on a flight is $300, the airline will sell seats and charge a price of $ for each seat.

2. If the airline can charge different prices to the two different types of passengers and its marginal cost of supplying a seat is still $300 per seat, then business travelers will buy seats at a price of $ per seat and vacation travelers will buy seats at a price of $ per seat.