Grandpa's Ride Company (GRCo) has a Ferris wheel on which it sells rides. Every day, on average,

100 boys and 100 girls come to take rides. Each boy's demand curve is

q_b=20-p

where p is the price of one ride. The demand curve of each girl is

q_g=10-p

The marginal cost of producing rides is zero.

(a) Find the market demand curve for rides.

(b) What price for rides should GRCo set if it wishes to maximize its profits? How much profit will

it make per day?

(c) Suppose now that GRCo has hired you as a consultant to see if they could increase their profits

by using a more sophisticated pricing strategy. It would of course be illegal to charge boys and

girls different prices. What pricing strategy would you recommend and how much profit would

Grandpa's make now per day?