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The Price Sensitivity of Demand  Form

The Price Sensitivity of Demand Form

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hi everyone in this video I'm going to go through a practice problem that explores the relationship between third degree price discrimination and price elasticity of demand so in the question we're told that town wise Leisure Center successfully engages in third degree price discrimination they sell two types of tickets one adult type ticket and one pensioner type ticket the pensioner type ticket is available to those who have a pensioner concession ID card the marginal cost associated with entry to the center is constant and equal to two the price elasticity of demand of the pensioner group is equal to -2.5 so here Epsilon p is price elasticity of demand and superscript P that means it belongs to the pensioners and that's equal to -2.5 and the price elasticity of demand for those purchasing the adults ticket is -1.5 so that's Epsilon p superscript a we are asked what are the prices that the Center charges to each group now I will say in this question the negative has been included whe

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