A movie monopolist sells to college students and other adults. The demand function for students is

QdS=1,640−100P,QSd=1,640−100P,

and the demand function for other adults is

QdA=2,000−100P.QAd=2,000−100P.

Costs are

C(Q)=1Q+0.005Q2mper ticket,C(Q)=1Q+0.005Q2m⁢per ticket,

where Q = Q_S + Q_A.

a. What prices will the monopolist set when she can discriminate?

P_student = $ per ticket.

P_adult = $ per ticket.

Profit = $.

b. What if demand for adults increases to

QdA=2,200−100P?QAd=2,200−100P?

P_student = $ per ticket.

P_adult = $ per ticket.

Profit = $.

c. When adult demand increases, the adult price:

	increases.
	does not change.
	decreases.

d. When adult demand increases, the student price:

	increases.
	does not change.
	decreases.