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Kashian Airline has determined that the price elasticity of demand for two customer segments (a Customer seeking First Class seats on an airplane has price
Kashian Airline has determined that the price elasticity of demand for two customer segments (a Customer seeking First Class seats on an airplane has price elasticity of demand is -1.50 while Coach seats have a price elasticity of demand is -3.66. Based on their expectations of profitability, Kashian realizes the Marginal Cost of the flight $500. How much should Kashian charge for its each of its products (coach and first class)? (20 Points)
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