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An ocean liner has space for up to 2000 passengers on each voyage. There are two market segments: elderly passengers and younger passengers. The demand curve for the elderly market segment is Q1 = 800 - 4P1. The demand curve for the younger market segment is Q2 = 1200 - 3P2. In each equation, Q denotes the number of passengers on a cruise of a given length and P denotes the price per person per day. The marginal cost of serving a passenger of either type is $40 per person per day
a) Assume that it is illegal for the ocean liner to price discriminate, so that it can charge only a single price P on both types of passengers. Find the price it will charge, and the number of passengers of each type. What will be the producer surplus? (note: round the number of passengers to the closest whole number.)
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