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For questions 5 - 6 use the following information. A traveling circus is evaluating its pricing policy for the next town it will visit. Demand
For questions 5 - 6 use the following information. A traveling circus is evaluating its pricing policy for the next town it will visit. Demand comes from two sources: children (under 12) and adults. The demand from children and its inverse are given by 1 Q0 =60060-Pg 4:} PC = 10_ EQC. The demand from adults and its inverse are given by 1 QA=80025'PA 4i)- PA=32%QA The circus management peOple are experienced at identifying whether a person is under 12 or not, and so are able to charge a dilferent price for children under 12 than for other peeple. The marginal cost per adult is zero, but the marginal cost per child under 12 is $1 because each child under 12 gets a free gift. The circus tent cannot accommodate more than 750 total people (children plus adults). 5. What are the protmaximizing quantities and prices
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