Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

The Bushman Cinema is the only movie theatre located in the medium-size country town of Sleepy Hollow.  The owner wants to charge an admission fee of $10 per seat and past experience suggests that at this price the theatre will be two-thirds full. An economist visiting the town tells the owner that he thinks demand is linear (represented by a straight-line) and that the elasticity of demand  is -0.78. Should the owner raise the price, lower the price or leave it unchanged if she wants to maximise revenue?  Give reasons for your answer.

 

 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9524687

Have any Question?


Related Questions in Microeconomics

Question a if a particular job had very elastic demand what

Question: A. If a particular job had very elastic demand, what would be the outcome if workers wanted a higher wage? What if the demand was very inelastic, what would be the likely outcome? B. What is the relationship of ...

Question 1 identify and evaluate consequences of government

Question: 1. Identify and evaluate consequences of government price supports and subsidies in U.S. farming markets. 2. Do rent ceiling laws for apartments result in an efficient allocation of apartment units? Why or why ...

Question 1 think about a trade off associated with taking

Question: 1. Think about a trade off associated with taking college classes and pursuing a degree. What kinds of things do you trade off to take classes and do homework? 2. Do you think supply and demands should dictate ...

Question the united states of americas national minimum

Question: The United States of America's national minimum wage is currently at $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come ...

Question a website offers a place for people to buy and

Question: A website offers a place for people to buy and sell emeralds, but information about emeralds can be quite imperfect. The website then enacts a rule that all sellers in the market must pay for two independent ex ...

Question below you find several incidents that are the

Question: Below you find several incidents that are the consequence of shifts in either Money Supply or Money Demand. First, tell me whether the instance is due to a Supply or Demand shift. Second, state which specific s ...

Question the directors of ace airlines have decided to

Question: The directors of Ace Airlines have decided to incentivize their 1,000 employees by issuing every one of them 200 shares of stock. (Assume there is no problem of equity dilution, because the company has 40 milli ...

Question risk management covers many areas of an

Question: Risk management covers many areas of an organization's operations. Describe a minimum of two elements of risk management and (1) evaluate if those elements are present in your organization's risk management pro ...

Discuss various means by which island governments in the

Discuss various means by which Island Governments in the South Pacific can institute reforms with respect to Government Trading Enterprises for maximum gains to both productive and allocative efficiency.

Question after the korean won devalued by approximately 50

Question: After the Korean won devalued by approximately 50% in late 1997 and the economy plunged into a severe recession in 1998, the economy rebounded strongly, with the growth rate returning to 9.3% in 2000. Without b ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As