Consider the following demand schedule for movie tickets

Price Quantity Demanded (Ticket per day)

9 100

8 200

7 300

Suppose the price of a movie ticket falls from $9 to $7.

a. Calculate the price elasticity of demand for movie tickets:

b. Is demand for movie tickets elastic or inelastic?

c. What is the change in the total revenue from the sale of movie

tickets

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Tod ThielLv2

20 Dec 2018

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Related questions

1-Economists recently found that a lot of increase in the price of beer caused the quantity demanded of wine to increase by 4%. This means that the cross-price elasticity of demand between beer and wine is.
a. 0.4, and beer and wine are substitutes
b. 2.5, and beer and wine are complements
c. 0.4, and beer and wine are complements
d. 2.5, and beer and wine are substitutes.

2. A I0% increase in the price of a movie ticket in Westridge 8 leads to an l5Yo decrease in the number of tickets sold, indicating the demand for movie tickets in Westridge 8 is:
a. elastic.
b. inelastic.
c. unit elastic.
d. Can not tell from the information given.

3. If economists estimate that the price elasticity of the supply of physician services is 0.2 then the supply of physician services is_ anda25o/o decrease in the price of physician services will result in the quantity supplied of physician services.
g. inelastic; 5olo decrease
h. inelastic; 5olo increase
i. inelastic;25Yo decrease
j. inelastic; 25olo increase
k. inelastic; 500/o decrease
l. inelastic; 500/o increase

4. A 5% decrease in the price of country music concert tickets causes a 15o/o increase in the demand for beer then the cross-price elasticity of demand between country music concert tickets and beers
a. -3.0 and tickets and beer are complements
b. -0.3 and tickets and beer are complements
c. -3.0 and tickets and beer are substitutes
d. -0.3 and tickets and beer are substitutes

5. An economist for the jeans industry has estimated the price elasticity of demand for blue jeans at -2.9. Based on this estimate 5o/o decrease in the price of jeans would result in a
a. 145% decrease in the quantity demanded of jeans
b. 14.5% increase in the quantity demanded of jeans
c. 2.9%o decrease in the quantity demanded of jeans
d. 2.9Yo increase in the quantity demanded of jeans

periwinkleduck471

At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Use the following demand schedule to complete the following questions;

Price(Dollars per ticket)..........Quantity Demanded(Tickets)

1000............................................0

700..............................................30

400..............................................90

200..............................................100

Calculate total revenue at each price.

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:

a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii) vacationers?

b. Why might vacationers have a different elasticity from business travelers?