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Women's NCAA basketball has enjoyed growing popularity across the country, and benefited greatly from sophisticated sports marketing. Savvy institutions use time-tested means of promotion, especially when match-ups against traditional rivals pique fan interest. As a case in point, fan interest is high whenever the Arizona State Sun Devils visit Tucson, Arizona, to play the Arizona Wildcats. To ensure a big fan turnout for this traditional rival, suppose the University of Arizona offered one-half off the $16 regular price of reserved seats, and sales jumped from 1,750 to 2,750 tickets.
A. Calculate ticket revenues at each price level. Did the pricing promotion increase or decrease ticket revenues?
B. Estimate the reserved seat demand curve, assuming that it is linear.
C. How should ticket prices be set to maximize total ticket revenue? Contrast this answer with your answer to part A.
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