The price elasticity of demand for movie theatres

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Reference no: EM131093154

Assume that the price elasticity of demand for movie theatres is -0.85 during all evening shows but for all afternoon shows the price elasticity of demand is -2.28. For the theater to maximize total revenue, it should..... Explain why.

a. charge the same price for both shows, holding other things constants.

b. charge a higher price for the evening shows, and lower price for the evening shows, holding other things constant.

c. charge a lower price for the afternoon shows and higher price for the evening shows, holding other things constant

d. need more information.

EXPLAIN WHY.

Reference no: EM131093154

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