HW3 (7 pts) Problem 1 Consider selling tickets for Berkeley and Stanford football game to be held at a stadium with 60,000 seating capacity. Demand curves for general public and students are given by dg (pg) = (90,000-3,000 pg)*, d. (p.) = (20,000 -1,250p,)*. a) (0.5 pts) Determine the maximum willingness to pay for each segment? b) (0.5 pts) Formulate the constrained optimization problem if the manger wants to charge separate prices for students and the general public? c) (0.5 pts) Consider the optimization problem you formulated in part b) Determine pg and ps, and also the resulting total revenue when these two prices are charged?

Problem 1 Consider selling tickets for Berkeley and Stanford football game to be held at a stadium with 60,000 seating capacity. Demand curves for general public and students are given by dg(pR)=(90,0003,000px),ds(ps)=(20,0001,250pk). a) (0.5 pts) Determine the maximum willingness to pay for each segment? b) (0.5pts) Formulate the constrained optimization problem if the manger wants to charge separate prices for students and the general public? c) (0.5pts) Consider the optimization problem you formulated in part b) Determine pg and ps, and also the resulting total revenue when these two prices are charged