The We Love Green promoter team is preparing the calendar for the upcomming season. Each program...

 

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The We Love Green promoter team is preparing the calendar for the upcomming season. Each program in the series comprises two days. The first day consist of the Gorillaz followed by Solomun, while the second consist of Disclosure followed by Chet Faker. The team paid an agency that profiled the potential groups of people that could attend the festival. The potential audience for the two days festival can be divided into four, equal sized segments: Hipsters, Bobo, Yuccies, and Ravers. The willingness to pay of each group can be summarized in the following in table I Table 1: Willingness to pay Hipster Bobo Ravers Yuccies Day 1 (Gorillaz and Solomun) Day 2 (Disclosure and Chet Faker) 80 40 40 80 90 10 10 90 (a) How should the promoter price the tickets for each day? Should he sell a festival pass? At what price? The We Love Green promoter team is preparing the calendar for the upcomming season. Each program in the series comprises two days. The first day consist of the Gorillaz followed by Solomun, while the second consist of Disclosure followed by Chet Faker. The team paid an agency that profiled the potential groups of people that could attend the festival. The potential audience for the two days festival can be divided into four, equal sized segments: Hipsters, Bobo, Yuccies, and Ravers. The willingness to pay of each group can be summarized in the following in table I Table 1: Willingness to pay Hipster Bobo Ravers Yuccies Day 1 (Gorillaz and Solomun) Day 2 (Disclosure and Chet Faker) 80 40 40 80 90 10 10 90 (a) How should the promoter price the tickets for each day? Should he sell a festival pass? At what price?

Answer rating: 100% (QA)

For Day 1 the promoter should price the tickets at 80 for Hipste... View the full answer