Theatres has determined that the price elasticity of demand for two customer segments (A Student Ticket to a Movie and a General Audience Ticket) is -1.25 and -1.4633. Based on their expectations of profitability, Theatres realizes the price of a General Ticket should be $12.00. How much should Theatres charge for its Student Ticket?
MR^A = P_A(1 + 1/ε_A) = m = P_B(1 + 1/ε_B) = MR^B
