worksheet4 - ECON 1000-100 Worksheet 4 Elasticity 1 You own...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 1000-100 Worksheet 4 Elasticity 1. 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 to increase your total revenue. Given the demand curves shown, answer the following questions. (Using the midpoint method) a. The elasticity of demand is more elastic in which market? : child b. Which market has the more inelastic demand? : Adult c. What is the elasticity of demand between the prices of $5 and $2 in the adult market? Is this elastic or inelastic? : (7/33=0.21), inelastic d. What is the elasticity of demand between $5 and $3 in the children’s market? Is this elastic or inelastic? : (4/3=1.33), elastic e. What is your current total revenue for both groups? : Total revenue from children’s tickets is $100 and from adult tickets is $250. Total revenue from all sales would be $350. f. Given the graphs and what your friend knows about economics, he recommends
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/31/2010 for the course ECON 1000 at Colorado.

Page1 / 3

worksheet4 - ECON 1000-100 Worksheet 4 Elasticity 1 You own...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online