Customer Service Chat
Get quote & make Payment
Elasticity of Demand, Business Economics
A baseball team is trying to predict ticket sales for the upcoming season. They are also considering increasing prices. The market has a population of 2 million persons. The team sold 2 million tickets last year.
a—the elasticity of ticket sales with respect to the size of the population is estimated to about 0.8.
i—briefly explain what this number means? Hint—this means if population rises by 10%, what is the relevance of 0.7. (2 Points)
ii—Keeping mind the elasticity of tickets sales with respect to the size of the population is estimated to be 0.7, if the local population increases by 100,000, what does this mean for ticket sales? Please provide the change in the number of ticket’s demanded. (3 Points)
b—currently the ticket price is $10. The price elasticity of demand for tickets is -0.60. Compute the
predicted change in tickets sold if the price were raised to $13. Also what is the expected change in total revenue? (4 Points)
c—The typical fan also consumer $7 worth of refreshments at a game. Would raising ticket prices to
$12 increase or decrease overall total revenue (ticket revenue and refreshment revenue)? How much would it go up or down? (8 Points)
Posted Date: 4/7/2013 6:59:39 PM | Location :
Ask an Expert
Elasticity of Demand, Assignment Help, Ask Question on Elasticity of Demand, Get Answer, Expert's Help, Elasticity of Demand Discussions
Write discussion on Elasticity of Demand
Your posts are moderated
Write your message here..
What are the differences among developing economies, What are the differenc...
What are the differences among developing economies? Developing countries are diverse. They can be different in terms of as: • Resource Endowment for example, a country is
Production possibility curve, project help
Economics of Sport, Assume there are two teams in the league: Los Angeles ...
Assume there are two teams in the league: Los Angeles and Sacramento. Because it is a much larger metropolitan area, the revenue generated at any given winning percentage is hi
Production theory and estimation, optimal use of variable input
optimal use of variable input
What is social exclusion, What is social exclusion? Social Exclusion...
What is social exclusion? Social Exclusion: Social exclusion arises while people are denied access to goods opportunities taken as normal in a society. In several develo
Find the median voter eqm, In the model with utilities W i = c i + α l...
In the model with utilities W i = c i + α ln(x i ) where individuals are endowed with ability levels w p m R and form fractions π p , π m , π r with π m > π p , π r
Long-run average cost curve, Why might the point at which the long-run aver...
Why might the point at which the long-run average cost curve levels out change over long periods of time? include a diagram.
Acknowledge & report for the market for education, Task You work for a...
Task You work for a government of a European country that is considering making admission to museums of your country free to make them available to everybody. You have deci
Franchise, How can franchises ensure their products are appropriate for int...
How can franchises ensure their products are appropriate for international markets?
Exception to law of demand, case study on diamond price and petrol price fo...
case study on diamond price and petrol price for exxception to the law of demand
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.