Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A state fair wants to use third degree price discrimination to establish their admission fees.The fair's marginal cost is $5 per person.Marketing consulting firm has
A state fair wants to use third degree price discrimination to establish their admission fees.The fair's marginal cost is $5 per person.Marketing consulting firm has estimated that the own price elasticity of demand for adults is -1.75, the own price elasticity for students is -2.25, and the own price elasticity of demand for senior citizens is -3.2.
If the fair practiced third degree price discrimination, how much should they charge senior citizens?Round to the nearest whole number.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started