A golf course operator must decide the green fees (prices) to set on rounds of golf. Daily demand during the week is Pd=36-Qd/10, where Qd is the number of 18-hole rounds and Pd is the price per round. Daily demand on the weekend is Pw=50-Qw/12. As a practical matter, the capacity of the course is 240 rounds per day.
a. Can the operator profit by charging different prices during the week and on the weekend? Explain briefly. What green fees should the operator set on the weekdays and how many rounds will be played? On the weekend?
b. When weekend prices skyrocket, some weekend golfers choose to play during the week instead. The greater the differences between weekday and weekend prices, the greater are the number of these "defectors." How might this factor affect the operator's pricing policy?