This is a Revenue management problem and excel solver is recommended

EX-2 Cannibation Home Insert Draw Page Layout Fermulas Data Review View Tell me Calibrl Body 12 w Test General De 8D- % 9 110 G B D E F 1 A stadium has 60,000 seats. The customers can be separated into students and general public. Their price 2 response functions are: 13 Public (Pe) = 120,000 -3,000Pg 4 Student ds(P) 20,000 -1.250Ps 5 a. If 5% of the public will use fake student ID to buy student tickets, what are the optimal prices for these 6 two segments? Total revenue? (Hint: Set initial prices for the two segments and use cell reference to calculate the original demand 2 assuming no cannibalization. Then use cell refernce to calculate the cannibalized demand by subtracting 5 8 frp, the original Public demand to get the cannibalized Public demand and adding that 5% to the Student 9 demand to get the cannibalized Student demand. Use the cannibalized demand to calculate the total 20 revenue. Finally, maximize the total revenue by changing the prices) 11 t. What is the highest price that the stadium is willing to pay for a fake ID detector? 12 13 14 15 price-response cannibalized 16 Price - input function Original demand demand Revenue 17 18 Public 120000-3000P8 19 Student 20000-1250PS 20 21 Cannibalization, a 0,05 Constraints capacity 50000 23 MacBook Air esc BO FI F * 0 11 1 2 3 4 % 5 7 8 Pasta 2 Wrap Text General 3 B A Marge & Carta % Conditional For Formatting at A15 vfse G . 3 8 9 N A B D 1 E F A stadium has 60,000 seats. The customers can be separated into students and general public. Their price-response functions are: Public: d(Pg) = 120,000 - 3,000Pg 4 Student: ds(Ps) = 20,000 - 1,250PS 5 a. If 5% of the public will use fake student ID to buy student tickets, what are the optimal prices for 6 these two segments? Total revenue? (Hint: Set initial prices for the two segments and use cell reference to calculate the original demand assuming no cannibalization. Then use cell refernce to calculate the cannibalized demand by subtracting 5% frp, the original Public demand to get the cannibalized Public demand and adding that 5% to the Student demand to get the cannibalized Student demand. Use the cannibalized 10 demand to calculate the total revenue. Finally, maximize the total revenue by changing the prices.) 11 b. What is the highest price that the stadium is willing to pay for a fake ID detector? 12 13 14 15 price response cannibalized 16 Price - input function Original demand demand Revenue 17 18 Public 120000-3000Pg 19 Student 20000-1250PS 20 21 Cannibalization, 0,05 22 23 24 25 26 Cannibation + Constraints capacity