\"'6. Elizabeth Airlines (EA) flies only one route: Chicago Honolulu. The demand for each ight is Q = 500 P. EA's cost of running each ight is $30,000 plus $10!] per passenger. in What is the prot-maximizing price that EA. will charge? How many people will be on each ight? What is EA's profit for each ight? 1:. EA learns that the xed costs per ight are in fact $41,000 instead of $30,000. Will the airline stay in business for long? Illustrate your answer using a graph of the demand curve that EA faces, EA's aver- age cost curve when xed costs are $30,630, and EA's average cost curve when xed costs are $41,000. c. Wait! EA nds out that two different types of people y to Honolulu. Type A consists of business people with a demand of {2A = 260 BAP. Type E consists of students whose total demand is Q5 = 240 - 0.6P. Because the students are easy to spot, EA decides to charge them different prices. Graph each of these demand curves and their horizontal sum. What price does EA charge the students? What price does it charge other customers? How many of each type are on ead'l ight? d. What would EA's prot be for each ight? Would the airline stay in business? Calculate the consumer surplus of each consumer group. What is the total consumer surplus? e. Before EA started price discriminating, how much consumer surplus was the Type A demand getting from air travel to Honolulu? Type B? Why did total consumer surplus decline with price discrimina- tion, even though total quantity sold remained unchanged