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Unformatted text preview: elasticity of demand? Will the stadium be full? f. A series of winning seasons caused the demand curve for football tickets to shift upwards. The new demand curve is q(p) = 300,000 10,000p. Ignoring the capacity constraint what price would generate maximum revenue? What quantity would be sold at this price? g. Now considering the capacity constraint faced by the director, how many tickets should he sell and what is the price? i. If he does this, what are the MR and the price elasticity of demand? 2. Write revenue as a function of quantity sold, and derive the marginal revenue. Analyse the relationship between marginal revenue and the elasticity of demand....
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This note was uploaded on 04/20/2010 for the course ECOS 2001 taught by Professor None during the One '09 term at University of Sydney.
- One '09