Question

Three problems in total related to Chapter 5: Problem 1 (Travel Demand and Supply Relationship): An airline company determines air ticket prices based on the number of seats (or tickets) sold for a route. Their pricing function is modeled as: p-200 + 0.2 * Q Where: p-S per seat (or ticket);O Number of seats sold. Meanwhile, based on a demand survey data collected for the company, the demand function is built as: Q = 5000-20 * p Where: p S per seat (or ticket); 0-Number of seats needed. Answer the following questions: (1) Predict the number of seats for the route and the ticket price when the system reaches the demand-and-supply equilibrium (2) If a surcharge of $25 per seat is imposed to passengers, predict the number of seats for the route and the ticket price when the system reaches a new demand-and-supply equilibrium (3) Graphically show the demand function, the two supply functions (without and with a surcharge), and the two equilibrium solutions in a two dimensional diagram with the x axis as the number of seats and the y axis as the price or cost (S).

please show works and calculations so I can understand. thanks

Answer 1

aor以 Given Equo-tions Price Ev-otion: Poids are 0, 300) Ca, 그 Sbld fice ) 2 0 2.4 0) 0,200) (5o00,0) -1000,0)

2 (sooo/9 소 (0,250) sooo-20x (200+0.2g) 5000-400o-4Q q- So, w he n A- Tic kut fruce = 240

2. (-1125,0) 소 (0,225) (5900, o) A- P TO

o. 00- 20p so 00 112s;o) G-5000-4500-4Q

IN。. at SuotA@ー So 100 pleause see