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A cricket team employs a third-degree price discrimination strategy by charging students $10 per ticket and everyone else $15 per ticket. (Students must show an
A cricket team employs a third-degree price discrimination strategy by charging students $10 per ticket and everyone else $15 per ticket. (Students must show an ID before they can get the discount.) The marginal cost to the team of each spectator is $5 whether or not the spectator is a student. Assuming that they are profit maximizers: What is the elasticity of demand for the students?
What is the elasticity of demand for everyone else?
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