Consider the market for skiing illustrated in the graph below. Suppose that demand by adults is shown by P1 and student demand is shown by P2. Assume that marginal cost is constant at $30 and that there are no fixed costs. Market for Skiing 105 100 95 85 75 70 65 55 P1 MRI P2 MR2 35 25 20 15 10 5 O 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 Quantity