Economics

Hawaii for a weekend holiday. The tourists can buy the flights and hotel separately or they can buy the bundle. Flight Hotel Bundle (Flight and Hotel) Allen $400 $50 $450 Barbara $350 $350 $700 Colin $50 $400 $450 The dollar values in the table are the amount each consumer is willing to pay for that particular option. (a) Assume that the Flight and hotel are sold separately. Each consumer has to be charged the same price for a flight and the same price for a hotel. What would the optimal price be if pricing was done in this manner? Please explain. (b) Assume that only a bundle of the Flight + Hotel are available. What is the optimal bundle price of the bundle? Please explain. (c) Assume that the Flight and the Hotel are available separately and as a bundle. What price of the hotel and flight separately, and then as a bundle would lead to maximum revenue for Paradise Vacations (you will have to determine the individual price and the bundle price)? Please give an explanation