Pe=1/2+I/4

Qe=5/2+I/4

(c) If movie goers are anticipating an increase in the ticket price of Marvel movies but at the same time they hope to continue going to the movie theater. Find the price elasticity of demand as a function of I using the equilibrium price and quantity found in part a. That is, find ED (I). (d) If the annual income of movie goers is I = 400, find an exact value for E"(400) and interpret that value