Question 3 Based on the relationship between price elasticity of demand and total revenues, evaluate whether...

 

Transcribed Image Text:

Question 3 Based on the relationship between price elasticity of demand and total revenues, evaluate whether the individual price changes the manager made were correct or not. Remember, Ruby Red Movie Theater wants to increase total revenue. A Was the decision to decrease the price of large drinks appropriate to increase total revenues? Why. or why not? Briefly explain in the box below. Answer B. Was the decision to increase the price of large popcom appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer C Was the decision to decrease the price of small drinks appropriate to increase total revenues? Why or why not? Briefly explain in the box below. Answer D. Was the decision to increase the price of small popcorn appropriate to increase total revenues? Why or why not? Briefly explain in the box below E Was the decision to decrease the price of candy appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer F. Was the decision to increase the price of hot dogs appropriate to increase total revenues? Why, or why not? Briefly explain in the box below Answer GWas the decision to increase the price of movie tickets appropriate to increase total revenues? Why, or why not? Briefly explain in the box below Answer Item Large Drink Large Popcorn Small Drink Small Popcorn Candy Hot Dog Movie Tickets Last Month $6.00 $7.50 $2.50 $5.00 $4.00 $5.00 $8.00 Price This Month $5.50 $8.00 $2.00 $5.25 $3.50 $5.25 $9.00 Quantity Demanded Last Month 150 E 125 75 45 57 35 428 This Month 161 101 80 39 68 36 300 Question 3 Based on the relationship between price elasticity of demand and total revenues, evaluate whether the individual price changes the manager made were correct or not. Remember, Ruby Red Movie Theater wants to increase total revenue. A Was the decision to decrease the price of large drinks appropriate to increase total revenues? Why. or why not? Briefly explain in the box below. Answer B. Was the decision to increase the price of large popcom appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer C Was the decision to decrease the price of small drinks appropriate to increase total revenues? Why or why not? Briefly explain in the box below. Answer D. Was the decision to increase the price of small popcorn appropriate to increase total revenues? Why or why not? Briefly explain in the box below E Was the decision to decrease the price of candy appropriate to increase total revenues? Why, or why not? Briefly explain in the box below. Answer F. Was the decision to increase the price of hot dogs appropriate to increase total revenues? Why, or why not? Briefly explain in the box below Answer GWas the decision to increase the price of movie tickets appropriate to increase total revenues? Why, or why not? Briefly explain in the box below Answer Item Large Drink Large Popcorn Small Drink Small Popcorn Candy Hot Dog Movie Tickets Last Month $6.00 $7.50 $2.50 $5.00 $4.00 $5.00 $8.00 Price This Month $5.50 $8.00 $2.00 $5.25 $3.50 $5.25 $9.00 Quantity Demanded Last Month 150 E 125 75 45 57 35 428 This Month 161 101 80 39 68 36 300

Answer rating: 100% (QA)

a A price increase will therefore increase total revenue while a price decrease will decrease total ... View the full answer