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HW 4 solution

# HW 4 solution - Homework 4 Bundling 1 You are the owner of...

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Homework 4 Bundling 1. You are the owner of a basketball franchise, and are in charge of determining the ticket prices. You hire an econ major from UTA to find out how much people are willing to spend on tickets to a basketball game. This is what the econ major tells you: There are 41 home games. People’s willingness to pay to go to a back is represented by the following graph: a. What price would you set for a single game day ticket? \$50 b. What price would you set for a 5 game package? \$225 or \$45 per game c. What price would you set for a 15 game package? \$625 or \$41.67 per game d. What price would you set for a 30 game package? \$1075 or \$35.83 per game e. What price would you set for season tickets? \$1295 or \$31.59 per game

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Price Discrimination 1. You are the owner of a baseball franchise, and are in charge of determining the ticket prices to attend the last game of the year. You hire an econ major from UTA to find out the demand to basketball games. This is what the econ major tells you: The stadium has a capacity of 40 (in thousands). The demand curve for the last game of the year
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