What would be your recommendation

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Reference no: EM132136966

The ABC movie theater has 300 seats. In a typical month, 25 percent of the seats are sold. The price elasticity is estimated to be -0.9. The price of a ticket is $8.00. The manager wants to increase the attendance to 30 percent. What price should he charge per ticket? (Note: Use the arc elasticity formula.) Is this a good strategy? What would be your recommendation?

Reference no: EM132136966

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