Managerial Economics: Applications, Strategy and Tactics 12th Edition by James McGuigan, Charles Moyer, Frederick Harris

Exercise 9

Explain the effect on capacity reallocations of advance sales data indicating mean demand of 55 rather than 60 during a slow travel week for business class, using the information in Figure, Table, and Equation.
Figure Optimal Differential Pricing and Capacity Allocation (45 Days in Advance) for Thursday 11:00 A.M. Flight from Dallas to Los Angeles

Table ALLOCATING AIRLINE CAPACITY WITH DIFFERENTIAL FARES FOR LEISURE AND BUSINESS

Equation