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5. You are a pricing analyst at a global network airline. Using historical data, you have determined that the demand for coach seats for passengers

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5. You are a pricing analyst at a global network airline. Using historical data, you have

determined that the demand for coach seats for passengers traveling for business and those

traveling for leisure are: 1) business demand: P = 180 - 3Q, and 2) leisure demand:

P = 100 - 0.5Q. The marginal cost for a passenger in coach class is $30.

a. Complete the diagram for the business segment showing optimal quantity and price.

image text in transcribedimage text in transcribedimage text in transcribed
\fLeisure Segment 100 90 80 70 Price 60 50 40 30 20 10 0 0 20 40 60 80 100 120 140 160 180 200 Leisure PassengersP Db P D MC

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