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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.
given short run total cost curve :10q^2+4q=100 and short run marginal cost MC=20q+4 and market demand Q=100-p what''s the equation of the short run supply curve?
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how do oligopolistic market and monopolistic competition react to change in demand and supply ?
Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commod
Risk Neutral - A person is a risk neutral if they show no preference between certain, and an uncertain income with the same expected value.
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