You manage a movie theater that can handle up to 8,000 patrons per week. The current demand, price, and elasticity for ticket sales, popcorn, soda, and candy are given in Figure 4.16. The theater keeps 45 percent of ticket revenues. Unit cost per ticket, popcorn sales, candy sales, and soda sales are also given. Assuming linear demand curves, how can the theater maximize profits? Demand for foods is the fraction of patrons who purchase the given food.

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C D G elasticity current price demand cost ticket percentage 3000 0 0.5 0.4 0.6 0.6 0.2 4 keep 45% ticket 3 8 0.45 1.3 popcorn soda candy 3.5 3 2.5 1.5 2.5 Figure 4-16: Data for Exercise 5 234 5 C D G elasticity current price demand cost ticket percentage 3000 0 0.5 0.4 0.6 0.6 0.2 4 keep 45% ticket 3 8 0.45 1.3 popcorn soda candy 3.5 3 2.5 1.5 2.5 Figure 4-16: Data for Exercise 5 234 5

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Answer See as above figure 416 show overall condition of Theater if the capacity of the theater is 8... View the full answer