1)I claimed in class that the problem in our luxury box example was that price was lowered too much in order to obtain 1 extra seat sale

Note

a.Compute the percentage change in price and the percentage change in quantity demanded when price falls from $1,000,000 to $950,000 and the boxes increase from 25 to 26.

b. What is the Elasticity of Demand for luxury boxes?

c. At what new lower price will total revenue be unchanged?

d. At what new lower price will profit be unchanged?

% 4 x = - = (x2 - X1) + *1 X