Question
Suppose average movie ticket prices are $8.50 and attendance is 1.2 billion. The prince of tickets rise to $9.50 and attendance rises to 1.4 billion.
Suppose average movie ticket prices are $8.50 and attendance is 1.2 billion. The prince of tickets rise to $9.50 and attendance rises to 1.4 billion.
a. What happened to total revenue?
b. If you were to estimate elasticity from these figures, what would your estimate be?
c. What provisos would you offer about your estimate of elasticity?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
3rd edition
2901133951482, 1133951481, 978-1133951483
