Answered: In Philippines alone they were able to…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter6: Demand And Elasticity

Section: Chapter Questions

Problem 6DQ

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more than what they have expected. In Philippines alone they were able to generate sale of ticket at 5,210 at a price of 170 pesos. However, the movie was able to raise its ticket sales to 6,000 pesos when it lowered the price to 150 pesos, in anticipation to increase more their profit margin.

Calculate ticket revenues at each price level
Did the pricing promotion increase or decrease ticket revenues?
Estimate the ticket linear demand curve
How should ticket prices be set to maximize total ticket revenue?

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