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You manage the only movie theater in town. You have noticed that seniors are more sensitive to price changes for movie tickets than the

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You manage the only movie theater in town. You have noticed that seniors are more sensitive to price changes for movie tickets than the rest of the movie goers. Specifically, you have found the seniors have an own price elasticity of demand of -1.85 for admission and the rest of the population has an own price elasticity of -1.2. Your best guess is that each additional ticket sold adds $2.00 to your costs or operations. How can you use this information to your advantage?

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