1. 3D cinema has led to an increase in the demand for movie tickets in Zurich. As a result, the price of a movie ticket has risen from 17 CHF to 22 CHF, and movie theaters, by offering showings earlier in the day and later into the evening, have increased the number of movies available by 15%. Calculate the PES of movies in Zurich. If demand continues to grow, what will happen to theaters' ability to respond to higher prices over time? How will this affect the PES over time?

Q. 2

1. Calculate Cross Price Elasticity for Pepsi

Price of Pepsi (Per Can)

No. of Cans sold (Pepsi)

Price of Coke per can

25

10

20

25

20

30