A Rock-Climbing School Faces Two Demand Curves

question 97

Multiple Choice

A rock-climbing school faces two demand curves. The demand by local residents is Q = 400 - 0.5P, and the demand by others is Q = 500 - 0.5P. The marginal cost of serving either local residents or others is constant at $100. If the rock-climbing school practices third-degree price discrimination, it will charge local residents and others a price of _____ and _____, respectively.

• A) $400; $800
• B) $450; $550
• C) $600; $650
• D) $275: $325

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Definitions:

Health Promotion

Activities aimed at improving health and preventing disease by enabling people to increase control over their health.

Foot Care Education

Educational programs aimed at teaching individuals how to maintain healthy feet and prevent foot-related problems.

Level of Prevention

The strategies implemented to prevent disease or injury, categorized into primary, secondary, and tertiary prevention.

Diabetes

A chronic condition characterized by high blood sugar levels resulting from the body's inability to produce or effectively use insulin.