Suppose average movie ticket prices are $8.50 and attendance is 1.2 billion. The prince of tickets rise
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Question:
Suppose average movie ticket prices are $8.50 and attendance is 1.2 billion. The prince of tickets rise to $9.50 and attendance rises to 1.4 billion.
a. What happened to total revenue?
b. If you were to estimate elasticity from these figures, what would your estimate be?
c. What provisos would you offer about your estimate of elasticity?
Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 978-1133951483
3rd edition
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
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