1. A team sells two categories of tickets, gold seats and p

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1. A team sells two categories of tickets, gold seats and purple… 1. A team sells two categories of tickets, gold seats and purple seats. Premium fans value gold seats as worth $30 and purple seats as worth $14. Budget fans value gold seats as worth $12 and purple seats are worth $9. There are an equal number of the two fans.The team sells tickets to the purple seats for $9. To maximize profits, how much should they charge for a gold seat? 2.A team sells tickets to their event and souvenir shirts. There is no marginal cost per ticket, but shirts cost $5 to produce. There are casual fans, who place a value of $10 on tickets and $10 on shirts, and serious fans, who place a value of $23 on tickets and $2 on a t-shirt.The team sells tickets as a mixed bundle, pricing a ticket and shirt combination at $20. If they want to maximize profits, how much should they charge for a ticket on its own? 3.Consider a demand-determined model, with a marginal propensity to consume of 0.80, a marginal propensity to import of 0.25 and a tax rate of 0.40. How much of an increase in economic activity would be generated by a $160 million increase in government spending? (Answers in millions, with no dollar sign – ie. $125,500,000 represented as 125.5) 4.A team is valued at $500 million, in an environment where the discount factor is d = 0.96 per year. What must be the expected value of yearly income (inclusive of all economic returns and ego rents) to justify this valuation? (Answer to the nearest million dollars without notation – ie. $62.2 million entered as 62.)Business Economics EC 310F

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