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Question 7.1 An airline {Operating as a monopolist) is facing demand from two types of travellers, recreational vs business travellers. Call these Group 1 and Group 2 respectively. Recreational travellers have a standard demand curve with demand given by $1 = 100 13, while business travellers have unusual demand where they demand up to 75 units of travel so long as the price is below $75, and demand no travel if the price is above $75. For ease of calculation, assume marginal costs are zero. a) b) d) Suppose the airline can engage in rst-degree price discrimination. How would the airline structure it's fares? What would be the Consumer Surplus for each Group, and the Producer Surplus for the airline. Suppose the airline can engage in second-degree price discrimination. How would the airline structure it's fares? What would be the Consumer Surplus for each Group1 and the Producer Surplus for the airline. Suppose the airline can engage in third-degree price discrimination. How would the airline structure it's fares? What would be the Consumer Surplus for each Group, and the Producer Surplus for the airline. Suppose the airline cannot engage in any kind of price discrimination. How would the airline structure it's fares? What would be the Consumer Surplus for each Group1 and the Producer Surplus for the airline. As a worker in the public sector, write a 2 to 3 sentence brief for your boss (who is not a. technical person) describing the qualitative properties of these results