Question #2: Assume a local movie theater has a 200-seat capacity and charges a $10 per ticket. This yields maximum total revenue of $2000 per show. The total cost per show is $800, and the profit is $1200 if the show is sold out. Further assume that the movie's patrons can be classified into two distinct groups: children (under 12- years old) and adults (those over 12). Each group buys 100 tickets per show, so each market segment provides $1000 of revenue, at the current price of $10 per ticket. These two groups have differing price elasticities of demand, with children having an elasticity of 3.0 and adults having an elasticity of 0.6. Now, assume you are hired as a consultant for the movie theater and you are required to suggest few pricing options for increasing profits for the movie theater, based on the knowledge gained from MKTG 101. Your gut feeling tells you that a 30% price increase for tickets is going to be profitable for the movie theater. Prove whether your gut feeling can be backed up by the numbers. Show your calculations