1. Sara operates a shuttle service between two airports in a large metropolitan area. The average amount required for the trip to be economically viable is $100 per trip. Market research shows that on average at any given point there are 10 potential passengers for this trip. These ten (10) individuals may be divided into two distinct groups. The first group, comprise of three (3) individuals which are willing to pay up to $25 a person for the trip. The second group, made up of seven (7) individuals, will pay up to maximum of $9 per person for the shuttle service.

A) Show that why under a uniform single price system the shuttle service will not be

offered.

B) Provide a recommendation that will make the offering of the shuttle service

economically viable and at the same time benefits ALL parties involved.