Navrang - a movie theatre in Delhi has two types of customers: i) College Students li) Senior Citizens. The college students will watch the Sunday movie if the ticket price is Rs 60 or less and senior citizen will watch if the ticket price is Rs 35 or less. Assume that there is no other cost in showing the
movie. On Sunday Morning, assume that there are 50 college students and 30 senior citizens in the theatre. The
theatre has three price strategies: -
i) Uniform rate of Rs. 35 for all
it) Uniform rate of Rs. 60 for all
lil) Rs 60 for college students and Rs 35 for senior citizens
a) Calculate the profits of the theatre under each of the above three price strategies.
b) Advise and give comments on each of the above three price strategies and their profits.
c) Which price strategies or option would you advise as an economist.