The Star Theater is the only movie theater in Hollywood, SC, and therefore ithas price-setting power. The Star Theater has two distinct types of customers:(i) senior citizens and (ii) non-senior citizens.The demand curve among senior citizens is: Y1whereY1110010p1, for p1 ≤ 10,is the number of seats demanded by senior citizens at a seniorcitizen ticket price of p1.140 - 10p2, forThe demand curve among non-senior citizens is: Y2P214, where y2 is the number of seats demanded by non-senior citizens ata non-senior citizen ticket price of p2.The Star Theater's cost function isC(y1 y2) = C(y1 + y2) = F + (y1 + y2), where F is the fixed cost ofoperating the theater and y₁ and 2 are (as already defined) the number ofsenior citizen and non-senior citizen customers, respectively.By how much does the Star Theater increase profits if it operates as a third-degree price discriminator instead of as a single-price monopolist?© $0$10$20$30

Approach to solving the question:For price discrimination, the profit -maximizing condition involves…

Answered: The Star Theater is the only movie…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hello could you please answer this ? If the price of a room at the Exhilaration were to decrease by 10%, from $250 to $225, while all other demand factors remain at their inital values, the quantiy of rooms demanded at the Triple Sevens (Rises/Falls) from___rooms per night to ___rooms per night. Because the cross price elasticity of demand is (Positive/Negative), hotel rooms at the Triple Sevens and hotel rooms at Exhilaration are (Complements/Substitute)
Consider the demand function for good1, Q1 = 2536 - 8P1 + 0.6000000000000001P2 - 1.75P3 + 0.05Y Where, price of good1 (P1) is 42, price of good2 (P2) is 197, price of good3 (P3) is 155, and income (Y) is 47792; (a) Find the price elasticity of demand (PED). (b) Find the income elasticity of demand (YED). (c) Find the cross-price elasticity of demand (XED) between good1 and good3. (d) Estimate the percentage change in the demand for good1 resulting from a 6% decrease in the price of good2. (e) Based on the value of YED, comment on the nature/type of the goods. (f) Based on the value of the XED between good 1 and good3, comment on the relationship between these two goods.Iknow its more than three questions but whoever solve 1,2,3 will able to solve rest. please solve all.
Demand Factor Initial Value Average American household income $40,000 per year Round trip airfare from Los Angeles (LAX) to Las Vegas (LAS) $200 per round trip Room rate at the Lucky Hotel and Casino, which is near the Big Winner $200 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Big Winner's Hotel Rooms 500 I Price (Dollars per room) 450 200 400 Quantity Demanded (Hotel rooms per night) 300 350 300 250 Demand Factors 200 150 Average Income (Thousands of dollars) Demand 40 100 50 Airfare from LAX to LAS (Dollars per round trip) 200 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Room Rate at Lucky (Dollars per night) 200 PRICE (Dollars per room)
consider the demand function for good1, Q1 = 2452 - 7P1 + 0.4P2 - 1.25P3 + 0.09Y Where, price of good1 (P1) is 29, price of good2 (P2) is 181, price of good3 (P3) is 199, and income (Y) is 30466; (a) Find the price elasticity of demand (PED). (Give your answer to two decimal places) (b) Find the income elasticity of demand (YED). (Give your answer to two decimal places) (c) Find the cross-price elasticity of demand (XED) between good1 and good3. (Give your answer to east two decimal places) (d) Estimate the percentage change in the demand for good1 resulting from an 8% decrease in the price of good2. (Give your answer to two decimal places, if required) (e) Based on the value of YED, comment on the nature/type of the goods Answer in one word. (f) Based on the value of the XED between good 1 and good3, comment on the relationship between these two goods Answer in one word.
For demand function P=24-6Q, demand Multiple Choice O is unit elastic at price 16. is unit elastic at price 12 is unit elastic at price 9. has unitary elasticity at all points on the function.
PRICE (Dollars per room) 500 450 400 350 300 250 200 150 100 50 0 Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Graph Input Tool Market for Triple Sevens's Hotel Rooms Price (Dollars per room) Quantity Demanded (Hotel rooms per night) Demand Factors Average Income (Thousands of dollars) Airfare from LAX to LAS (Dollars per roundtrip) Room Rate at Exhilaration (Dollars per night) 350 150 50 250 200 For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Triple Sevens is charging $350 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevens rooms per night. Therefore, the income elasticity of demand is from rooms per night to , meaning that hotel rooms at the Triple Sevens are If the price of an airline ticket from LAX to LAS were to increase by 20%, from $250 to $300 roundtrip, while all other demand factors…
A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 846 - 23x, where q is the quantity of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a) through f). WWE a) Find the elasticity. E(x) = b) At what price is the elasticity of demand equal to 1? ¢ (Round to the nearest cent as needed.) c) At what prices is the elasticity of demand elastic? OA. Greater than 18¢ OB. Prices cannot be elastic in this case OC. Prices are elastic at all values D. Less than 18¢ d) At what prices is the elasticity of demand inelastic? O A. Prices are inelastic at all values OB. Less than 18¢ OC. Greater than 18¢ e) At what price is the revenue a maximum? \[ x= \] (Round to the nearest cent as needed. Use a comma to separate answers as needed.) f) At a price of13∈/per cookie, will a small increase in price cause the total revenue to increase or decrease? Increase Decrease
QUESTION 2 Replicas of popular mid-century furniture and homeware can be highly sought after by interior designers. Suppose a company sold 1000 replica Eames chairs for a price of $600 each. However, when they set the price at $750, they only sold 750. Which of the following statements are true: The point price elasticity of demand for replica Eames chairs at a price of $600 is unit elastic. At a price of $600 per chair, a 1% increase in the price of replica Eames chairs would lead to a 1% decrease in the quantity of chairs sold. The point price elasticity of demand for replica Eames chairs at a price of $600 is 0.0239 (to four decimal places). The point price elasticity of demand for replica Eames chairs at a price of $600 is 0.02 (to two decimal places).
For the demand function q = D(p) = 442-p, find the following a) The elasticity b) The elasticity at p = 110, stating whether the demand is elastic, inelastic or has unit elasticity c) The value(s) of p for which total revenue is a maximum (assume that p is in dollars) ... a) Find the equation for elasticity. E(p) = b) Find the elasticity at the given price, stating whether the demand is elastic, inelastic or has unit elasticity E(110) (Simplify your answer. Type an integer or a fraction) Is the demand elastic, inelastic, or does it have unit elasticity? = inelastic elastic unit elasticity c) Find the value(s) of p for which total revenue is a maximum (assume that p is in dollars) (Round to the nearest cent. Use a comma to separate answers as needed.)
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Triple Sevens is charging $200 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevensrises from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Triple Sevens are .

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