Question: Question 2 The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well as tickets this month in

Question 2

The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well as tickets this month in an effort to increase revenues.Below, you are provided with prices for last month and this month as well as the quantities demanded for both months. Use this information when answering questions A-H below.

Price

Quantity Demanded

Item

Last Month

This Month

Last Month

This Month

Large Drink

$6.00

$5.50

150

161

Large Popcorn

$7.50

$8.00

125

101

Small Drink

$2.50

$2.00

Small Popcorn

$5.00

$5.25

Candy

$4.00

$3.50

Hot Dog

$5.00

$5.25

Movie Ticket

$8.00

$9.00

428

300

A.Calculate the total revenues earned by the theater last month and this month (Show your work.)

Total revenues last month =

Total revenues this month =

B.Calculate the price elasticity of demand forlarge drinks. (Show your work.)

Is the price elasticity of demand forlarge drinksprice elastic, inelastic, or unit (unitary)? Briefly explain why in the box below.

Answer =

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C.Calculate the price elasticity of demand forlarge popcorn. (Show your work.)

Is the price elasticity of demand forlarge popcornprice elastic, inelastic, or unit (unitary)? Briefly explain why in the box below.

Answer =

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D.Calculate the price elasticity of demand forsmall drinks. (Show your work.)

Is the price elasticity of demand forsmall drinksprice elastic, inelastic, or unit (unitary)? Briefly explain why in the box below.

Answer =

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E.Calculate the price elasticity of demand forsmall popcorn. (Show your work.)

Is the price elasticity of demand forsmall popcornprice elastic, inelastic, or unit (unitary)? Briefly explain why in the box below.

Answer =

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F.Calculate the price elasticity of demand forcandy. (Show your work.)

Is the price elasticity of demand forcandyprice elastic, inelastic, or unit (unitary)? Briefly explain why in the box below.

Answer =

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G.Calculate the price elasticity of demand forhot dogs. (Show your work.)

Is the price elasticity of demand forhot dogsprice elastic, inelastic, or unit (unitary)? Briefly explain why in the box below.

Answer =

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H.Calculate the price elasticity of demand formovie tickets. (Show your work.)

Is the price elasticity of demand formovie ticketsprice elastic, inelastic, or unit (unitary)? Briefly explain why in the box below.

Answer =

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