The Sac State basketball team faces the following inverse demand curves for games at the Hornets Nest.
Students: PS = 12 – 0.5Q
Adults: Pa = 18 – Q
The marginal cost is constant at $0.
a. If the team uses segmenting, calculate the ticket prices charged to adults and students.
b. How much producer surplus does the team earn from segmenting?
c. What price will the team charge per ticket if it does not segment? How much producer surplus will it earn?
