In a local theatre, 2000 tickets can be sold in a week when the price of a

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In a local theatre, 2000 tickets can be sold in a week when the price of a movie is set at $10 week. According to market research, Ed (price elasticity of demand) is 0.8. Now the management of the theatre has decided to raise the price of a movie to be $12.

(The formula of Ed is for your reference.)

37) The weekly demand of tickets is going to __________.

A) decrease by 10%

B) decrease by 12%

C) decrease by 14%

D) decrease by 16%

E) decrease by 18%

38) The weekly revenue is going to __________.

A) decrease by $260

B) have no change

C) increase by $160

D) increase by $260

E) increase by $360

Related Book For answer-question

Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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Posted Date: Feb 14, 2024 02:20 AM

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