Will big top be more efficient by offering discount

Reference no: EM131297941

Big Top is the only circus in the nation. Table 2 sets out the demand schedule for circus tickets and the cost schedule for producing the circus.

At the market equilibrium price, no children under 10 years old attend the circus. Big Top offers children under 10 a discount of 50 percent. How will this discount change the consumer surplus and producer surplus? Will Big Top be more efficient by offering the discount to children?

Reference no: EM131297941

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