7. Wild Joe's Exotic Cat Funhouse is an exotic cat zoo in medium-sized town. If the zoo is open, the owners must pay a fixed nightly amount of $500 for zookeepers, security, and so on, regardless of how many people come to see the cats. For simplicity, assume that if the zoo is closed, its costs are zero. The demand for Wild Joe's Exotic Cat Funhouse tours is QR = 220 - 20PR, where OR is the number of tours by local residents at price PR. The demand from tourists (non- locals) that visit to see the cats is QNR - 140 - 10PNR. a. [5] If Wild Joe's charges a single price, Pr , to everybody, what would be the aggregate demand and inverse aggregate demands for movies? (Hint: Consider reservation prices for tours). b. [10] What is the profit-maximizing number of tickets for the zoo to sell if it charges one price to everybody? How many tickets would it sell to each type of visitor? What would its profits be? c. [10] If Wild Joe's could perfectly sort zoo visitors into the two groups by requiring that they show their IDs to check their addresses (assume no ticket reselling by locals and no fake IDs for tourists), would Wild Joe's want to price discriminate? d. Suppose that the zoo has a maximum capacity of 150 guests and the manager wants to price discriminate by charging different prices to locals and tourists. i. [2] If QR tickets are sold to locals, write an expression for the residual demand that is left for tourists. ii. [5] Write an expression for the price of tourist tickets as a function of the number of local tickets sold. (Hint: use answer to part (i) and the non-resident demand function.) ili. [10] Write an expression for Wild Joe's profits that is only a function of QR. Use this to find the profit maximizing number of ticket sales to locals and tourists, respectively? What are the prices charged to the two groups