If Omer has sport hall for adults and children. The currently price per ticket is OR 5 foreveryone (adults and children). His friend Ali who studied economics course in CCBAadvises him that there may be another way of increasing your total revenue. Given thedemand curves (adult demand and child demand) shown,Adult DemandChild DemandPricePrice$10$108.776543321110 20 30 40 50 60 70 80 90 100 Quantity10 15 20 25 30 35 40 45 50 QuantityAnswer the following questions from the above two curves.a. What is Omer's current total revenue for both groups (adults and children)?b. Which market has the more inelastic demand?d. Given the graphs and what your friend knows about economics, he recommends you increasethe price of adult's ticket to $8 and lower the price of a child's ticket to $3. How much couldyou increase total revenue if you take his advice?

Total revenue is the product of price and quantity. In the given case, Omer charges uniform price…

If Omer has sport hall for adults and children. The currently price per ticket is OR 5 for everyone (adults and children). His friend Ali who studied economics course in CCBA advises him that there may be another way of increasing your total revenue. Given the demand curves (adult demand and child demand) shown, Adult Demand Child Demand Price Price $10 $10 8. 7 6 5 5 4 4 3 2 1 1 10 20 30 40 50 60 70 80 90 100 Quantity 5 10 15 20 25 30 35 40 45 5o Quantity Answer the following questions from the above two curves. a. What is Omer's current total revenue for both groups (adults and children)? b. Which market has the more inelastic demand? d. Given the graphs and what your friend knows about economics, he recommends you increase the price of adult's ticket to $8 and lower the price of a child's ticket to $3. How much could you increase total revenue if you take his advice?

If Omer has sport hall for adults and children. The currently price per ticket is OR 5 for everyone (adults and children). His friend Ali who studied economics course in CCBA advises him that there may be another way of increasing your total revenue. Given the demand curves (adult demand and child demand) shown, Adult Demand Child Demand Price Price $10 $10 8. 7 6 5 5 4 4 3 2 1 1 10 20 30 40 50 60 70 80 90 100 Quantity 5 10 15 20 25 30 35 40 45 5o Quantity Answer the following questions from the above two curves. a. What is Omer's current total revenue for both groups (adults and children)? b. Which market has the more inelastic demand? d. Given the graphs and what your friend knows about economics, he recommends you increase the price of adult's ticket to $8 and lower the price of a child's ticket to $3. How much could you increase total revenue if you take his advice?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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If Omer has sport hall for adults and children. The currently price per ticket is OR 5 for
everyone (adults and children). His friend Ali who studied economics course in CCBA
advises him that there may be another way of increasing your total revenue. Given the
demand curves (adult demand and child demand) shown,
Adult Demand
Child Demand
Price
Price
$10
$10
8.
7
7
6
5
4
3
3
2
1
1
10 20 30 40 50 60 70 80 90 100 Quantity
10 15 20 25 30 35 40 45 50 Quantity
Answer the following questions from the above two curves.
a. What is Omer's current total revenue for both groups (adults and children)?
b. Which market has the more inelastic demand?
d. Given the graphs and what your friend knows about economics, he recommends you increase
the price of adult's ticket to $8 and lower the price of a child's ticket to $3. How much could
you increase total revenue if you take his advice?

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