Mcdonald's, a big burger joint, is charging $5 for its very famous Big Mac hamburger and selling around 20 milion Big Mac in a year in Singapore. a. Suppose Mcdonald's increases the price of its Big Mac to $6 and still manages to sell the same quantity of the Big Mac. How much revenue will Mcdonald's gain? What can you infer about the price elasticity of demand (PED) For Mcdonald's Big Mac? Assume in an alternative scenario, the increase in the price of Big Mac to $6 reduces its quantity sold to 18 million. How much revenue will Mcdonalds gain now? What can you conclude about the PED now? b. Given the two scenarios presented in part a which one do you think is more likely and why?  C. Suppose Mcdonds's Big Mac and movie tickets have negative cross price elasticity of 15. What does this number tell us on the relationship between the Big Mac and movie tickets? Suppose. The Golden Vilage (GV), Singapore's leading cinema exhibitor, decides to increase the price of its movie tickets by 10%. How will this development affect McDonald's pricing decisions as indicated in part (a)?

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