1610 ECO 231 S2 2022 ECO231 Tutorial 2 Table of Contents Part 1 of 1- Question 5 of 511 Points The director of a theater company in a small college town is considering changing the way he prices tickets. He has hired an economic consulting firm to estimate the demand for tickets. The firm has classified people who go to the theater into two groups, and has come up with two demand functions. The demand curves for the general public (Qgp)and students (Qs) are given below: Qgp= 500 - 5P and Qs= 200 - 4P a. If the current price of tickets is R35, identify the quantity demanded by each group. [1] b. Find the price elasticity of demand for each group at the current price and quantity. If the price of tickets increases by 10%, what will happen to demand by both the general public and students? [4] c.Is the director maximizing the revenue he collects from ticket sales by charging R35 for each ticket? Explain. What should the director do? [3] d.What price should he charge if he wants to maximize revenue collected from general public ticket sales and student sales? [3]