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Consider the following demand schedule for movie tickets
Price Quantity Demanded (Ticket per day)
9 100
8 200
7 300
Suppose the price of a movie ticket falls from $9 to $7.
a. Calculate the price elasticity of demand for movie tickets:
b. Is demand for movie tickets elastic or inelastic?
c. What is the change in the total revenue from the sale of movie tickets.
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