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Use the following information to answer the next TWO questions: NASA's space shuttle program ran its final mission in July 2011, which left NASA no
Use the following information to answer the next TWO questions: NASA's space shuttle program ran its final mission in July 2011, which left NASA no choice but to rely on the Russian space agency to get it to the international space station. This effectively gave Russia a monopoly on space travel. In the meantime, Russia was facing a new demand: from space tourists. Suppose the demand curve from each type of traveler is of the constant elasticity form. For NASA astronauts, the price elasticity of demand is -1.5. For space tourists the price elasticity of demand is -3.0. The marginal cost of serving a traveler of either type is MC=40 per traveler. Suppose that Russia can engage in third-degree price discrimination. 19. What price will they charge to NASA astronauts? $ ______________ 20. What price will they charge to space tourists? $ _______________
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