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Question
The following table summarizes six potential customersu2019 ages and willingness to pay for a solo skydiving experience from SkyMasters. The aircraft has room for eight people, including the pilot and skydiving instructor. The marginal cost of adding each additional passenger is $100. SkyMasters holds significant market power for its region.
Use this information to answer the following questions:
| Customer | Maximum Willingness to Pay | Age |
| Harold | $400 | 50 |
| Leslie | $350 | 42 |
| Jay | $300 | 45 |
| Kristen | $250 | 21 |
| Ivana | $200 | 20 |
| Matt | $150 | 18 |
If SkyMasters decides to price discriminate based on age, which customer(s) will not skydive based on the price that should be offered to that particular age group?
a. Jay
b. Harold and Jay
c. Kristen and Harold
d. Matt
e. Ivana
Answer
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