Factors the might influence the price elasticity of demand

Assignment Help Business Economics

Reference no: EM131244572

You have been put in charge of ASU Gammage Auditorium. The market for ticket sales is made up of both students and nonstudents. You have determined the students' demand curve for ticekts is given by P=17-0.15Q while the demand for nonstudents is P=20 - 0.1Q

a) At a price of $11, what is the market Quantity demanded?

b) Suppose you are currently charging $5 per ticket to both students and nonstudents. Calculate the price elasticity of demand for students associated with a change in the ticket price from $5 to $6 (Do not use the midpoint method to calculate this elasticity).

c) Explain two factors the might influence the price elasticity of demand.

d) Suppose you are currently charging $5 per ticket to both students and nonstudents. If your objective is to increase you revenue (price x quanitity), should you increase, decrease or maintain the price that students pay? Should you increase, decrease or maintain the price that nonstudents pay? Explain.

Reference no: EM131244572

Questions Cloud

Free agents immediately upon entry into the major leagues : Major league baseball teams scout and hire younger players whom they then train in the minor leagues for a period of three to five years. Very few of their trainees (perhaps 5 percent) actually make it to the major leagues, but if they do they are bo..

Imply for the growth rate of output per worker over time : Suppose that manna from heaven falls faster and there is a one-time permanent increase in the rate of technological progress, so g rises to g’. What does this imply for the growth rate of output per worker over time? Explain in analytical and graphic..

Summarizes the net effect of the listed bank transactions : Which of the following correctly summarizes the net effect of the listed bank transactions?

Long run effects of a one-time increase in stock of labor : What are the short run and long run effects of a one-time increase in the stock of labor (because of, for example, a particularly large cohort of college graduates joining the labor force)?

Factors the might influence the price elasticity of demand : When the percentage cYou have been put in charge of ASU Gammage Auditorium. The market for ticket sales is made up of both students and nonstudents. You have determined the students' demand curve for ticekts is given by P=17-0.15Q while the demand fo..

Positive economic? statement : Which of the following is a positive economic? statement? Suppose the U.S. government encouraged consumers to trade in their old automobiles for more? efficient, new models by paying up to? $5,000 for the old automobiles. These consumers would be exe..

What is equation for the indifference curve for a utility : Sally the Greek’s preferences can be described by the utility function U(x, y) = (2x1/2 + y1/2)2. What is equation for the indifference curve for a utility of 25? By how much does utility increase when Freddy increases consumption of good y by one (s..

When the percentage change in the quantity demanded : When the percentage change in the quantity demanded is less than the percentage change in? price, then demand is. Assume the cost of certain inputs used to produce artificial Christmas trees increases? and, at the same? time, the economy moves into a..

What is the market quantity demanded : ASU Ticket Pricing You have been put in charge of ASU Gammage Auditorium. The market for ticket sales is made up of both students and nonstudents. At a price of $11, what is the market quantity demanded?

User Account

All Pages