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Disneyworld is trying to decide what price to charge for entry tickets. It knows that the maximum amount elderly people would be willing to pay
Disneyworld is trying to decide what price to charge for entry tickets. It knows that the maximum amount elderly people would be willing to pay for a ticket is $10. At that price, there would be 5,000 tickets sold. There are also 30,000 parents and kids who would be willing to pay $25 for a ticket. If Disneyworld cannot price discriminate, it charges a price of and earn in revenue. If Disneyworld is able to perfectly price discriminate, it will increase its revenue by $10; $875,000; $125,000 $20; $600,000; $200,000 $25; $750,000; $125,000 $25; $750,000; $50,000
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