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2. (Ex 1.2) A small airline, Ivy Air, flies between three cities: Ithaca, Newark, and Boston. They offer several flights but, for this problem, let

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2. (Ex 1.2) A small airline, Ivy Air, flies between three cities: Ithaca, Newark, and Boston. They offer several flights but, for this problem, let us focus on the Friday afternoon flight that departs from Ithaca, stops in Newark, and continues to Boston. There are three types of passengers: (a) Those traveling from Ithaca to Newark. (b) Those traveling from Newark to Boston. (c) Those traveling from Ithaca to Boston. The aircraft is a small commuter plane that seats 30 passengers. The airline offers three fare classes: (a) Y class: full coach. (b) B class: nonrefundable. (c) M class: nonrefundable, 3-week advanced purchase. Ticket prices, which are largely determined by external influences (i.e., competitors), have been set and advertised as follows: Ithica-Newark Newark-Boston Ithica-Boston Y 300 160 360 B 220 130 280 M 100 80 140

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