Suppose American Airlines offers weekly flights from Columbus to Chicago. There are two types of customers: business and leisure. Each customer wants to fly once per week. Business travelers are willing to pay up to $300 per flight and leisure travelers are willing to pay up to $200 per flight. The number of leisure travelers,N, is the same as the number of business travelers. Suppose marginal costs are zero.

1. (a)Suppose American cannot distinguish between business and leisure travelers. What price should they charge?
2. (b) Now suppose American learns that business travelers do not like to travel on weekends. Business travelers are willing to pay $300 for a flight on the weekned but only $225 for a flight on the weekend. Leisure travelers are willing to pay $200 for a flight regardless of the day of the week. How much should the airline charge for a weekend flight and how much for a weekday flight? Explain your answer.