Question 3: Please show all work!

Question 3 USC Athletics is preparing to market the USC v UCLA rivalry football game. The game this year is being played at the Rose Bowl, meaning that UCLA is the home team and U80 only has 1000 tickets they can sell to their fans. Based on the data so far this season, USC estimates that if they set the ticket price to be $150 then they will sell 750 tickets, whereas if they set the price to be $50 then they will sell 1250 tickets. a) Assuming demand is a linear function of the price, what must be the demand function D(p)? Remember, two points determine a line: the slope (m) and intercept (b) of a linear b) Using the demand function you calculated in (a), what is the revenue maximizing price for USC's ticket block? Will this ll all the allotted 1000 seats? (4 points) [NOTE: your answers will be graded correct relative to the demand function you found in (a), i.e. errors in (a) will not be carried forward in the grading of the rest of the problem. If you are not satised with your answer to (a), you can use D(p) = 1800 - 6*p.] c) To get fans in seats, USC will offer two prices: a higher price for closer (better) seats and a lower price for a farther (worse) block of seats, which may appeal to students. Using the demand function you calculated in (a), if the better-seat price is $200, what should the farther-seat price be in order to sell all the tickets? You may assume that anyone willing to pay for a high price ticket will buy at that price rather than the lower price (as the higher price guarantees a better seat). (6 points) d) Using what you have calculated, what makes more money: the single revenue maximizing price from (b) or the seat-lling two prices from (c)? (5 points)