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Plato Playhouse, a theatre company in the university town of Wegg, caters to two groups ...

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Plato Playhouse, a theatre company in the university town of Wegg, caters to two groups ...

Figure 16-2

Plato Playhouse, a theatre company in the university town of Wegg, caters to two groups of customers:
students and the non-student population.
Figure 16-2 shows the demand curves for the two groups of customers.

Refer to Figure 16-2. Suppose Plato Playhouse price discriminates. What is the price charged in the two markets?

• price in the student market = price in the non-student market = Pa

• price in the student market = price in the non-student market = Pb

• price in the student market = Pd; price in the non-student market = Pe

• price in the student market = Pc; price in the non-student market = Pe

Textbook

Microeconomics

Edition: 7^th

Authors: Hubbard, O'Brien

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