Question
if maximum willingness to pay for movie tickets is uniformly distributed between $5 and $15 with w(x) = 1/10, and the maximum weekly demand at
if maximum willingness to pay for movie tickets is uniformly distributed between $5 and $15 with w(x) = 1/10, and the maximum weekly demand at a movie theater is 5000, estimate the demand function for this theater. b. Plot the maximum willingness to pay distribution function and demand function. c. If the maximum willingness is a linear function w(x)w(x) = 1100x1100x estimate the demand function. d. Plot the maximum willingness to pay distribution function and demand function.
Note: The slope of the demand function at any price point is the density function of maximum willingness to pay at that price. To get the slope, assume d is dependent variable y, and p is independent variable x.
e. If demand function for this theater is d = 10000 500p, what is the distribution function of maximum willingness to pay? (10 points)
Note: The slope of the demand function at any price point is the density function of maximum willingness to pay at that price. To get the slope, assume d is dependent variable y, and p is independent variable x
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