Arsenal is choosing their base prices for single game tickets. They have home games on two days of the week: Tuesday (T) and Saturday (S). The inverse demand for a Tuesday game tickets is given by PT = 45 2QT and the inverse demand for Saturday game tickets is given by PS = 60QS. The marginal cost of ticket production is MC = 5 for both days.

1. Suppose that Arsenal sets two separate ticket prices, one for Tuesday games and one for Saturday games.

a) What price per ticket and quantity will Arsenal sell on Tuesday? On Saturday?

b) What are Arsenal's profits?

2. Suppose the league changes its rules so that Arsenal must sell all base price single game tickets at a single price.

a) Find the market (inverse) demand curve.

b) What single price per ticket and quantity will Arsenal set?

c) What are Arsenal's profits?