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7. The airline offering the flights and fares shown in Table 8.4 decides to raise the San Francisco-to-St. Louis discount fare from $170 to $225.

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7. The airline offering the flights and fares shown in Table 8.4 decides to raise the San Francisco-to-St. Louis discount fare from $170 to $225. It estimates that discount demand at this new fare will be 20. Given that all other fares and demands remain the same, determine the new optimal set of allocations and total revenue for the network using linear programming. TABLE 8.4 Two-flight network management example fares and demands Number ODF Fare Demand 1 2 3 4 5 6 San Francisco to Denver full fare San Francisco to Denver discount Denver to St. Louis full fare Denver to St. Louis discount San Francisco to St. Louis full fare San Francisco to St. Louis discount $150 100 120 80 250 170 30 60 20 80 30 40 7. The airline offering the flights and fares shown in Table 8.4 decides to raise the San Francisco-to-St. Louis discount fare from $170 to $225. It estimates that discount demand at this new fare will be 20. Given that all other fares and demands remain the same, determine the new optimal set of allocations and total revenue for the network using linear programming. TABLE 8.4 Two-flight network management example fares and demands Number ODF Fare Demand 1 2 3 4 5 6 San Francisco to Denver full fare San Francisco to Denver discount Denver to St. Louis full fare Denver to St. Louis discount San Francisco to St. Louis full fare San Francisco to St. Louis discount $150 100 120 80 250 170 30 60 20 80 30 40

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