Assume that a professional sports team maximizes profits but realizes that there are different demands for games depending on the day of the week. Suppose the inverse demand is given by P=167-2Q for Sundays and it is P = 120 - 1.5Q for Tuesdays. Furthermore, assume that the marginal cost of selling a ticket is constant per ticket and equal to 3. Assume there are no capacity constraints.

a) Draw a single graph as close to scale as you can and clearly label all relevant lines and axes.

b) What discount will the team give to Tuesday ticket purchasers to maximize their profits?

c) What will attendance be on Tuesdays versus Sundays?

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a To graph the demand curves for Sundays and Tuesdays well plot the inverse demand equations For Sun... View the full answer