Consider an airline that initially has a single price of $300 for all consumers. At thisprice, it has 120 business travelers and 80 tourists. Theairline's marginal cost is $150. The slope of the business demand curve is minus$3 pertraveler, and the slope of the tourist demand curve is minus$2 per traveler.

a) Does thesingle-price policy maximize theairline's profit? yes or no?

b) The airline should ( Increase/decrease) the price it changes business travelers and it should ( increase/decrease) the price it charges tourists.