Managerial Economicsquestion

A.'IO Group Pricing Question 4: Two attractions that make Knotts Berry Farm different from other amusement parks are its shows and its roller coaster rides. After Knotts Berry Farm took out some of its shows and added more roller coaster rides, they noticed that demand for admission by senior citizens (age 65 and older) changed. An analyst for Knotts estimates the new demand for park admission by senior citizens to be |n(QK) = 5.5 - 2 |n(Pf) - 6 |n(PK) - 3 |n(Ph) where 0K is the units demanded for Knotts Berry Farm park admission by senior citizens, Pr is the price of food in restaurants surrounding the park, PK is the price of Knotts Berry Farm park admission, and Ph is the price of room rentals in hotels surrounding the park. That analyst also estimates new demand for park admission by young adults to be |n(QK) = 9.7 - 3 |n(Pf) - 2 |n(PK) - 7 |n(Ph) where OK is the units demanded for Knotts Berry Farm park admission by young adults. How can Knotts use to its advantage that difference in demand between senior citizens and young adults? (Naturally, assume market conditions do not allow customers to resell individual units (park admissions) to other customers.)