Re: ISI 2010

Posted by Ram on May 05, 2012; 3:01pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-2010-tp7530130p7530378.html

Hi, the answers I got for Question 3 b part are
For business class tickets   P=350-(q/10)
For Economy class tickets   P=110-(q/200)
I have taken it as normal linear inverse demand function which is P=a-bq and we know one point on the curve and we also know the MC of both. So we will get two equations in two unknowns i.e. from substituting the point on the curve we will get one eq and by equating MR=MC we will get eq.