W AutoSave Off BECN 150 - ONE - Assignment 1- Due October 18, 2022 (1) - Compatibility Mode . Saved to this PC v Search (Alt+Q) A ahamd rashid X File Home Insert Draw Design Layout References Mailings Review View Help Comments Share ~ Times New Roman ~ 12 ~ A" A Aa Ap Find Emphasis Heading 1 Normal Strong Paste Subtitle Replace BIUvab x x' A LA Dictate Editor Select v Undo Clipboard Font Paragraph Styles Editing Voice Editor 1. Problem 1 - Demand and Supply - 14 Marks 2. Problem 1 - Elasticity of Demand - 18 Marks Price You own a small-town movie theatre. You currently charge $5 per ticket for everyone who comes to your movies. Your friend who took an economics course in college tells you that there may be a way $30- S to increase your total revenue. Given the demand curves shown, answer the following questions. 25- Adult Demand Child Demand 20- Price Price $10 $10 15+ 9 00 60 10- 8 5 100 200 300 400 500 600 700 800 Quantity NW a. In this market, what would be the equilibrium price and the equilibrium quantity? 2 Marks Answer: The equilibrium price would be P=20 & Q = 600 b. If price is $25, what would be the quantity demanded? 2 Marks 0 10 20 30 40 50 60 70 80 90 100 Quantity 0 5 10 15 20 25 30 35 40 45 50 Quantity Answer: 500 c. If price is $25, what would be the quantity supplied? 2 Marks a. What is your current total revenue for both groups? 5 Marks Answer: 800 b. The elasticity of demand is more elastic in which market? 1 Mark c. Which market has the more inelastic demand? 1 Mark d. Calculate the Ed (Price Elasticity of Demand Coefficient) using the mid-point between prices d. What is the elasticity of demand between the prices of $8 and $5 in the adult market? Is this $25 and $15. 4 Marks elastic or inelastic? (Use the mid-point formula). 4 Marks Answer: The mid point between 25 and 15 is 20 & its inelastic e. What is the elasticity of demand between $5 and $3 in the children's market? Is this elastic or inelastic? (Use the mid-point formula). 4 Marks Calculate the Es (Price Elasticity of Supply Coefficient) using the mid-point between prices $25 f. Given the graphs and what your friend knows about economics, he recommends you increase the and $15. 4 Marks price of adult tickets to $8 each and lower the price of a child's ticket to $3. How much could you The midpoint between 25 and 15 is 20, if innital price is 25 then it's a -20% drop in price increase total revenue if you take his advice? 3 Marks Page 1 of 4 Page 2 of 4 Page 1 of 4 566 words CX Text Predictions: On &? Accessibility: Unavailable " Focus -+ 80% 7 C O W IDON 49 ENG 2:27 PM Cloudy US 2022-10-18 3