B. Marketing for Regal Entertainment You are Marketing Manager for Regal Entertainment, the largest movie-chain company. You know that the annual number of movie tickets sold ("quantity demanded") depends on the price that Regal charges and on the average income of movie-goers. Your staff presents you with the following portion of the demand schedule given this-year's average income of movie-goers. Price Quantity Demanded (dollars per ticket) (millions of tickets per year) 44 24 36 40 (total 5 points--1 point each for BI, B2, B3, B4, B5) B1. (a) Define PRICE ELASTICITY of demand for movie tickets, when quantity demanded depends on both price and income. (b) Using the midpoint method, compute PRICE ELASTICITY when Regal reduces price from $44 to $36. Show your computation. B2. (a) Using the midpoint method, compute PRICE ELASTICITY when Regal increases price from $36 to $44. Show your computation (b) Is your answer to 2.(a) higher, lower, or the same as your answer to 1.(b)? Why? B3. (a) Compute total revenue when price is $44 and total revenue when price is $36. Show your computations. (b) How does the value of elasticity explain which is greater? Discuss thoroughly. B4. (a) Define INCOME ELASTICITY of demand for movie tickets. What is held or assumed constant'? (b) Your staff forecasts that the income of the typical movie-going household (average income of movie-goers) will increase by six percent next year and that the income elasticity of demand for movie tickets is two. By what percent will quantity demanded increase as a consequence? Show your computation