Assignment 3(305674).docx - Question 1 Information...

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Question 1Information regarding the community’s average income and movie ticket sales at the RubyRed Movie Theater for both last year and this year are presented below. Use this informationwhen answering questions A–C, below.Last YearThis YearCommunity’s Average Income$55,800$57,474Movie Ticket Sales4,9805,021A. Calculate the Income Elasticity of Demand for movie tickets. (Show your work. You can typeit in the box below, or write it out by hand, take a picture, and insert the picture in the box.Make sure it fits in the box. NOTE: These options apply to all “Show your work” responses.)
B. Are movie tickets considered to be inferior goods, normal goods, or unit (unitary) goods inthis town? Explain why.
C. A new firm is relocating to the city and adding a large number of above average salaries. Willthe number of movie ticket sales for the theater increase, decrease, or remain constant? Baseyour answer on information you answered in part B above.
Question 2The manager at Ruby Red Movie Theater decided to change the prices of concession stand itemsas well as tickets this month in an effort to increase revenues. Below, you are provided withprices for last month and this month as well as the quantities demanded for both months. Use thisinformation when answering questions A–H below.Price

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Term
Fall
Professor
mam naila
Tags
Supply And Demand, d, prices of concession stand items

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