QUESTION 14 Use the table below to create a nonlinear model based on the table to answer the following question(s). The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They have three classes of tickets: Classic, Silver, and Gold. The table below provides information on the average ticket sales, revenue and price elasticity on demand. They have a total seating capacity of 300. The table also provides the price range within which they plan to reduce their ticket rates. Atlas Movie Theater Ticketing Ticket Class Current Rate Average Classic Silver Gold 8.45 13.25 17.5 Total Capacity 300 Daily Sold Elasticity Price Range 150 80 30 -1.3 -2.25 -1.1 6.5 11.5 15.5 7.5 12.5 16.5 According to the nonlinear model, what is the new price for Silver tickets? O $12.06 O $7.40 O $12.50 O $12.17

QUESTION 14 Use the table below to create a nonlinear model based on the table to answer the following question(s). The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They have three classes of tickets: Classic, Silver, and Gold. The table below provides information on the average ticket sales, revenue and price elasticity on demand. They have a total seating capacity of 300. The table also provides the price range within which they plan to reduce their ticket rates. Atlas Movie Theater Ticketing Ticket Class Current Rate Average Classic Silver Gold 8.45 13.25 17.5 Total Capacity 300 Daily Sold Elasticity Price Range 150 80 30 -1.3 -2.25 -1.1 6.5 11.5 15.5 7.5 12.5 16.5 According to the nonlinear model, what is the new price for Silver tickets? O $12.06 O $7.40 O $12.50 O $12.17

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 5E

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AJM distributors has hired you to provide financial advice on a product being sold. They have supplied the following information: The equation: p= 40 - x 4 Using the above equation they would like you to supply information regard to pricing of one of their new products. Make an analysis of the price elasticity of demand obtained from the function given, informing all of the members of the team: -procedure of calculation -Analysis of value obtained -Explanation on how various values of elasticity can affect the profitability of the company Explain the implications (if any) by setting p at a value of $25 vs $30 Advise on how this price increase to $30, will affect the demand for the product and the profitability to the company.
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