Figure 1 shows the demand for movie tickets. Is the demand for movie tickets elastic or inelastic over the price range $7 to $9 a ticket? If the price falls from $9 to $7 a ticket, explain how the total revenue from the sale of movie tickets will change. Calculate the price elasticity of demand for movie tickets when the price is $8 a ticket.

 

Transcribed Image Text:

FIGURE 1 Price (dollars per ticket) 10- 100 200 300 Quantity (tickets per day) FIGURE 1 Price (dollars per ticket) 10- 100 200 300 Quantity (tickets per day)

Answer rating: 100% (QA)

With movie tickets certain consumers have an elastic response ... View the full answer