Q 4: You own a small-town movie theatre. You currently charge $5 per ticket for everyone who comes to your movies.
Your friend who took an economics course in college tells you that there may be a way to increase your total revenue.
Given the demand curves shown, answer the following questions.
1. What is your current total revenue for both groups?
2. The elasticity of demand is more elastic in which market?
3. What is the elasticity of demand between the prices of $5 and $2 in the adult market? Is this elastic or inelastic?
(use midpoint method)
4. Given the graphs and what your friend knows about economics, he recommends you increase the price of adult
tickets to $8 each and lower the price of a child's ticket to $3. How much could you increase/decrease
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Explanation: I would like to understand it because I read it but I still don't understand
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