answer to 1, 2, 3

Which of the following is an example of block pricing? Select one: O Paula buys a pack of eight candles, because it is cheaper than buying each candle individually. O Jenny pays her landlord separately for rent and for electricity. O Brian pays his golf membership in monthly installments. O Trevor goes to the movies with his partner, and receives a discount because he is a student. Bundling works best in terms of increasing total revenue when the demand for two (or more) goods is: Select one: O inelastic. O heterogeneous. O elastic. O homogeneous. Say that the Auckland Philharmonia Orchestra (APO) is planning a series of two concerts, made up of: (1) music by Berlioz and Tchaikovsky (romantic); and (2) music by Bartok and Stravinsky (neoclassical). Say that there are four types of fans with roughly equal numbers, with willingness to pay for the two concerts as in the table below (assume that the willingness to pay for a second ticket to the same concert is zero. Fan type WTP for Concert 1 WTP for Concert 2 A $40 520 (Romantics) $20 $40 (Neo-classicals) C (Tchaikovsky fans) $45 $5 D $5 $45 (Stravinsky fans) If the APO is trying to maximise revenue, the best option overall is to: Select one: O sell tickets for each individual concert for $20, and sell a season ticket to both concerts for $40. O sell tickets for each individual concert for $5, and sell a season ticket to both concerts for $90. O sell tickets for each individual concert for $45, and sell a season ticket to both concerts for $60. O sell tickets for each individual concert for $40, and sell a season ticket to both concerts for $50