Q. The promoters of a major basketball tournament try to segment their tickets into two groups:

I. Adults Tickets, with a Demand: Q_A = 5000-10P

II. Student Tickets, with Demand: Q_S = 10000-100P

The promoter's Marginal Cost per ticket is same for all output levels as $10

Please answer the following:

I. For Price Segment: Adults Tickets: a. Write the Inverse Demand Curve and Marginal Revenue Curve Functions:

Inverse Demand Curve Function :

Pricing Strategy from No of Tickets [Q*) | Max. Price | Min. Price TR PS Segmenting Part III (Acult + Student $872,250 $802,750 Perfect Price Discrimination Part IV ( c) Same as above $508,601 $439,101 Perfect Price Discrimination Part IV ( d] Maximum Possitie Part B: 10 marks Suppose, the promoter plan to sell only 5000 tickets to the two groups. How the tickets will be allocated among the two groups if segmenting is used? That is, how many tickets are to be sold to adult group and how many to student group so as to maximise the total producer surplus from both groups (and Total Revenue)? Quantity (number of tickets) for Adults: 2450 tickets Quantity (number of tickets) for students: 2550 tickets At what prices those tickets are to be sold? Price for Adults: Price for Students: 111. What will be the total revenue generated from selling those 5000 tickets? iv. Is it a good decision to restrict the number of tickets to 5000? Please fill-in the following table and provide your observation. Your observations may target acieving higher reveaue or PS or increasing revenue per ticket or comparing percentages etc. NB: For part II, consider only segmenting as option and not perfect price discrimination. Adults Students Total Number of Tickets Part I Profit Maximizing Quantity Part II Share of 5000 tickets sold Percentage of max tickets sold Total Revenue Part I TR at Profit Maximizing Quantity Part II TR at Share of 5000 tickets sold Percentage of max revenue achieved Producer Surplus Part I PS at Profit Maximizing Quantity Part II PS at Share of 5000 tickets sold Percentage of max PS achieved