1.Escape Movie Theater is planning to offer a subscription service to its theater patrons.It proposes offering subscribers all the movies they want to attend and view at $1 per movie after paying a monthly subscription fee.It costs Escape Movie Theater $0.25 per theater patron to show a movie. As their economist, you have calculated that the monthly demand by each movie goer for viewing movies at Escape Movie Theater is Q_D = 25 - 5P, where P is the price per movie viewed.

a.What is the maximum monthly subscription fee you propose Escape Movie Theater charge each subscription holder? (3 points)

b.What is the monthly profit Escape Movie Theater makes from each subscriber? (2 points)

c.Escape Movie Theater is near SLU. SLU administration has negotiated with Escape to offer SLU student subscribers all the movies they want to attend and view at $0.60 per movie after paying a monthly subscription fee.You have calculated that the monthly demand by a SLU student for viewing movies at Escape Movie Theater is Q_D = 20 - 5P, where P is the price per movie viewed.What is the monthly subscription fee you charge the SLU students? (3 points)

d.What is the monthly profit Escape Movie Theater makes from each SLU subscriber? (2 points)