Miron Floren, of Lawrence Welk Show fame, now tours the country performing at accordion concerts.A careful analysis of demand for tickets to Mr.Floren's concerts reveals a strange segmentation in the market.Demand for tickets by senior citizens is described by Q0= 500P-3/2 while demand by those under 65 years old is Qy = 50P-4.If the marginal cost of a ticket is $3, how should tickets to Mr.Floren's concerts be priced to maximize profits?
A) $9 for senior citizens and $4 for those younger
B) $12 for senior citizens and $4.50 for those younger
C) $3 for senior citizens and $8 for those younger
D) $4.71 for all tickets
E) $6 for senior citizens and $12 for those younger
Correct Answer:
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