Both demand curves are downward sloping and linear.For the general public,the vertical intercept is100and the horizontal.For the students,the vertical interceptis50 and the horizontal intercept is200.Th general public demands=500-5(35)=325 tickets and the students demand =200-4(35)=60 tickets. b.Find the price elasticity of demand for each group at the current price and quantity. The for the oneral.54 and the elasticity 325 tor the student5 =-2.33.If the price of tickets increases by one public l demand tickete and the td ewertickets. Is the director maximizing the r revenue he collects from ticket sales by charging $35 for each ticket?Explain. No he is not maximizing revenue since neither one of the calculated elasticities is equal to-1.Since demand by the general public is inelastic at the current price,the director could increase the price and quantity demanded would fall by a smaller amount in percentage terms.causing revenue to increase.Since demand by the thecurren price,the director coud decrease the price and quantity demanded would increase by a larger amount in percentage terms,causing revenue to increase. d. What price should he charge each group if he wants to maximize revenue collected from ticket sales? To figure this out,find the formula for elasticity.set it equal to-1,and solve for price and quantity.For the general public: =-1 5P=Q=500-5P P=50 0=250. For the students: Both demand curves are downward sloping and linear. For the general public, the vertical intercept is 100 and the horizontal intercept is 500. For the students, the vertical intercept is 50 and the horizontal intercept is 200. The general public demands  Qg p = 500 − 5(35) = 325 tickets and the students demand  Qs = 200− 4(35)= 60 tickets. b. Find the price elasticity of demand for each group at the current price and quantity. The elasticity for the general public is  gp = −5(35) 325 = −0.54 and the elasticity for the students is  gp = −4(35) 60 = −2.33 . If the price of tickets increases by one percent then the general public will demand .54% fewer tickets and the students will demand 2.33% fewer tickets. c. Is the director maximizing the revenue he collects from ticket sales by charging $35 for each ticket? Explain. No he is not maximizing revenue since neither one of the calculated elasticities is equal to –1. Since demand by the general public is inelastic at the current price, the director could increase the price and quantity demanded would fall by a smaller amount in percentage terms, causing revenue to increase. Since demand by the students is elastic at the current price, the director could decrease the price and quantity demanded would increase by a larger amount in percentage terms, causing revenue to increase. d. What price should he charge each group if he wants to maximize revenue collected from ticket sales? To figure this out, find the formula for elasticity, set it equal to –1, and solve for price and quantity. For the general public:  gp = −5P Q = −1 5P = Q = 500 − 5P P = 50 Q = 250. For the students: