PROBLEM 1:

• You are the curator of a museum. The museum isrunning short of funds, so you decide toincrease revenue . Should youINCREASEorDECREASEthe price of admission? Explain.

PROBLEM 2:

• Suppose that business travelers and vacationers have thefollowing demand for airline tickets from New York toBoston:

Price Quantity Demanded Quantity Demanded (business travelers) (vacationers $150 2,100 tickets 1,000 tickets 200 2,000 800 250 1,900 600 300 1,800 400