A movie theatre owner runs an experiment. She decreases prices 2% and discovers that ticket sales increased

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A movie theatre owner runs an experiment. She decreases prices 2% and discovers that ticket sales increased by 5%. Also, she increases prices by 1% and discovers that sales decrease by 2%. What should the owner do to maximize revenue?

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Modern Principles Of Economics

ISBN: 9781319245399

5th Edition

Authors: Tyler Cowen, Alex Tabarrok

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Question Posted: Feb 02, 2023 02:48 AM

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A movie theatre owner runs an experiment. She decreases prices 2% and discovers that ticket sales increased

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Perhaps the easiest way to solve this problem is to substitute some numbers Suppose that sales are 1...View the full answer

Modern Principles Of Economics

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