A movie theater in Brooklyn recently decreased the price of a movie ticket by 5%. The attendance at this movie theater went up by 2% within a month of the 5% decrease in the price of the ticket. The median household income in the neighborhood in which the movie theater is located has increased by 3% over the last year. During the same period, the attendance at this movie theater went up by 1.5%.

• What is the price elasticity of demand for tickets at this movietheater?(3points)
• Is the price elasticity of demand for ticketsconsidered elastic orinelastic?Why?(2points)
• How wouldafurther increase in the price of the ticket affectthe theater revenue?(2points)
• What is the income elasticity of demand for tickets at this movietheater?(3points)