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3. You live in a building with 300 seniors and 200 young adults, and you are thinking about putting on a play to entertain your
3. You live in a building with 300 seniors and 200 young adults, and you are thinking about putting on a play to entertain your neighbors and make some money. A play has a xed cost of $2,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customer; Price Seniors Young Adults $10 0 0 9 100 0 8 200 0 7 300 0 6 300 0 5 300 100 4 300 200 3 300 200 2 300 200 1 300 200 0 300 200 (a) To maximize prot, what price would you charge for an senior ticket? For a young adult ticket? How much prot do you make? (b) The city council passe-3 a law prohibiting you from charging different prices to different customers. What price do you set for a ticket now? How much profit do you make? (0) \"'ho is worse off because of the law prohibiting price discrimination? W110 is better OH? (If you can, quantify the Changes in welfare.)
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