Question
Suppose amovie theater determines it can charge different prices to patrons who go to weekday matinees and people who attend evening and weekend shows. The
Suppose amovie theater determines it can charge different prices to patrons who go to weekday matinees and people who attend evening and weekend shows. The movie theater's goal is to increase total revenue. The price elasticity of demand for weekend and evening patronsis -0.80, and the price elasticity of demand for matinee moviegoersis -1.80. Based on the price elasticity of demand for each group of people, how should the movie theateradjust its prices?
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Macroeconomics Canada in the Global Environment
Authors: Michael Parkin, Robin Bade
8th edition
321778103, 978-0321808370, 321808371, 978-0321778109
