You own a small town movie theatre. You currently charge $5 per ticket for everyone who...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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. a. b. C. d. 10 9 8 7 6 5 4 3 2 1 10 9 8 7 6 5 4 3 2 1 Price Adult Demand 10 20 30 40 50 60 70 80 90 100 Quantity 个 Price Child Demand 5 10 15 20 25 30 35 40 45 50 55 60 65 70 Quantity What is your current total revenue for both groups? The elasticity of demand is more elastic in which market? Which market has the more inelastic demand? What is the elasticity of demand between the prices of $5 and $2 in the adult market? Is this elastic or inelastic? 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. a. b. C. d. 10 9 8 7 6 5 4 3 2 1 10 9 8 7 6 5 4 3 2 1 Price Adult Demand 10 20 30 40 50 60 70 80 90 100 Quantity 个 Price Child Demand 5 10 15 20 25 30 35 40 45 50 55 60 65 70 Quantity What is your current total revenue for both groups? The elasticity of demand is more elastic in which market? Which market has the more inelastic demand? What is the elasticity of demand between the prices of $5 and $2 in the adult market? Is this elastic or inelastic?
Expert Answer:
Answer rating: 100% (QA)
Question 1 a Charging a price of 5 from both groups implies that the first group buys 50 tickets and ... View the full answer
Related Book For
Systems Analysis and Design
ISBN: 978-1305494602
11th Edition
Authors: Scott Tilley, Harry J. Rosenblatt
Posted Date:
Students also viewed these economics questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The following figure shows a firm's marginal and average costs of production. a. The equilibrium price in this market is $5. At this price, does the firm earn profits or is it making losses? b. From...
-
Elaborate on how culture constituted a barrier for McDonalds in acquiring the Indian market and how the company adjusted its marketing strategies to address that barrier.
-
A childs grandparents purchase a $10,000 bond fund that matures in 18 years to be used for her college education. The bond fund pays 4% interest compounded semiannually. How much will the bond fund...
-
A family starts an education fund for their son Patrick when he is 8 years old, investing $150 on his eighth birthday increasing the yearly investment by $150 per year until Patrick is 18 years old....
-
Dye Trucking raised $150 million in new debt and used this to buy back stock. After the recap, Dyes stock price is $7.50. If Dye had 60 million shares of stock before the recap, how many shares does...
-
Algonquin Equipment reported the following items on November 30, 2010 (amounts in thousands, with last years amounts also given as needed): Requirements 1. Compute Algonquin Equipments (a) quick...
-
The entity theory of equity implies that there should be no need for financial statements to distinguish between debt and equity. Alternatively, proprietary theory implies that such a distinction is...
-
What goal(s) do you think the communication was intended to achieve? What type of promotional communication is it and why? What do you believe to be the advertising theme or central idea of the...
-
The G. Saussy Manufacturing company is putting out four new electronic components. Each of Saussy's four plants has the capacity to add one more product to its current line of electronic parts. The...
-
Cindy, Charlotte, and Carol Brock are sisters who are Canadian residents. Over the years, they have enjoyed varying degrees of economic success. As a consequence, they are currently sub- ject to...
-
Neweway Plastics manufactures an acrylic compound used in automobile bumpers in a continuous flow process. Raw material is added at the beginning of the process and conversion costs are incurred...
-
A \(1.0-\mathrm{mW}\) laser has a beam radius of \(0.6 \mathrm{~mm}\). What is the intensity of this beam?
-
If the electric field in an electromagnetic wave \(100 \mathrm{~mm}\) from a radio-emitting antenna has a maximum magnitude of \(6.0 \times 10^{5} \mathrm{~V} / \mathrm{m}\), what is the maximum...
-
An electromagnetic wave has root-mean-square magnetic field magnitude \(B_{\mathrm{rms}}=1.5 \times 10^{-6} \mathrm{~T}\). What are the root-mean-square electric field magnitude and the average...
-
Would a charged particle moving at a high speed in a circle create kinks in its electric field?
-
An appraiser used the cost approach to estimate a propertys value at $220,000. The site value was $50,000, and the total depreciation estimate was $4,000. What was the estimated cost of improvements?
-
6 (a) Briefly develop a mathematical model of the behaviour of a copper-twisted pair cable (b) Derive the magnetic energy from: w given that: K + w, where the - - k symbols have their usual meaning...
-
Agile methods use rapid development cycles to iteratively produce running versions of the system. How would these shorter cycles affect the ability of the analyst to manage systems requirements?
-
Go to the SEIs website on System of Systems at http://www.sei.cmu.edu/sos/. Document the main differences for a system analyst working at this scale, and describe the role CASE tools could play...
-
Create an online training module using one of the systems discussed in this chapter, such as udemy or lynda.com, on the topic of managing systems implementations.
-
Consider the monthly log returns of GM stock in m-gmsp5008.txt. Build an adequate TGARCH model for the series. Write down the fitted model and test for the significance of the leverage effect. Obtain...
-
Consider the daily log returns of American Express stock from January 1999 to December 2008 as in Exercise 1.1. Use the 5\% significance level to perform the following tests: (a) Test the null...
-
Now consider similar questions of the previous exercise for the IBM stock returns. (a) Is there any weekday effect on the daily simple returns of IBM stock? Estimate your model and test the...
Study smarter with the SolutionInn App