1. Let's say that museums have only three ways to bring in revenue: admission ticket sales,...

 

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1. Let's say that museums have only three ways to bring in revenue: admission ticket sales, net sales from the gift shop, and charitable donations from art lovers. Further, let's say that the demand for admission tickets for museum visits can be expressed as where P = 400 -0.2Q P = admission ticket price Q= number of visitors per day. a. How many visitors per day will the museum have at a ticket price of $12? b. The museum is considering a new policy of a $0 admission price. The museum is open 365 days a year. How much money would the museum have to raise in donations and gift shop sales to replace the lost revenue from the new policy? c. The museum conducts research through focus groups to determine that a $0 ticket price will encourage some visitors to spend more at the gift shop. If the increased spending at the gift shop follows the pattern shown below, and if the gift shop has a profit margin of 35%, how much more money will the gift shop bring in? 60% will spend an extra $20 25% will spend an extra $10 15% will spend $0 extra d. With the higher sales at the gift shop, how much of the revenue shortfall will now have to made up by donations? 1. Let's say that museums have only three ways to bring in revenue: admission ticket sales, net sales from the gift shop, and charitable donations from art lovers. Further, let's say that the demand for admission tickets for museum visits can be expressed as where P = 400 -0.2Q P = admission ticket price Q= number of visitors per day. a. How many visitors per day will the museum have at a ticket price of $12? b. The museum is considering a new policy of a $0 admission price. The museum is open 365 days a year. How much money would the museum have to raise in donations and gift shop sales to replace the lost revenue from the new policy? c. The museum conducts research through focus groups to determine that a $0 ticket price will encourage some visitors to spend more at the gift shop. If the increased spending at the gift shop follows the pattern shown below, and if the gift shop has a profit margin of 35%, how much more money will the gift shop bring in? 60% will spend an extra $20 25% will spend an extra $10 15% will spend $0 extra d. With the higher sales at the gift shop, how much of the revenue shortfall will now have to made up by donations?

Answer rating: 100% (QA)

Answer a Using the demand for admission tickets P300015Q At P15Q 300150151900 Therefore the museum w... View the full answer