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Suppose the typical Buffalo Bills fan has the demand curve for Bills football games: P = 120 - 10G, where G is the number of games the fan attends.
a. If the bills want to sell the fan a ticket to all eight home games, what price must they charge?
b. Suppose the Bills have the chance to offer a season ticket that is good for all eight home games, a partial season ticket that is good for four home games, and tickets to individual games. What price should they charge? What is their revenue?
Suppose the Arizona Cardinals have fans whom are much more sensitive to price than the fans in Buffalo as described in (5). Their demand cure for football games is P = 120 - 15G. Illustrate what is true about the prices they are able to charge and their revenue if they try to practice second degree price discrimination as the Bills did? What does this happen?
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