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To conduct an experiment, a movie theatAn end-of-aisle price promotion changes the price elasticity of a good from 2 to 3. Suppose the normal price
To conduct an experiment, a movie theatAn end-of-aisle price promotion changes the price elasticity of a good from 2 to 3. Suppose the normal price is $40, which equates marginal revenue with marginal cost at the initial elasticity of -2.er increased movie ticket prices from $9 to $10 and measured the change in ticket sales. The theater then gathered data over the following month to determine whether the price increase was profitable. Assume total costs to the theater are the same, whether the price of a ticket is $9 or $10
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