User Account

All Pages

Find the price elasticity of demand

Assignment Help Macroeconomics
Reference no: EM132632263

Suppose the Theatre and Dance Department at OWU is considering changing the way they price tickets for their productions. As the consultant you have classified people who go to the productions of the theatre and dance department into two groups and have come up with two demand functions.

The demand equation for the general public (Qg) and students (Qs) are given below:

Qg=500-5P

Qs=200-4P

a. Find the price elasticity of demand for each group at the current price and quantity

b. Is the theatre department maximizing the revenue it collects from ticket sales by charging $35 for each ticket? Explain

c. What price should they charge each group if they want to maximize the revenue it collects from ticket sales?

Reference no: EM132632263

Questions Cloud

Describe the various costing methods used in management : Describe the various costing methods used in management accounting. Outline their advantages and disadvantages. Provide real time examples
Calculate the price elasticity of demand for good x : Calculate the price elasticity of demand for good X at the current price of X.
Opportunity to practice stock valuation problems : The purpose of this assignment is to allow students the opportunity to practice stock valuation problems and to locate financial information on the Internet,
How many units were completed during april : April, 11,100 units were started and as of April 30, 7,100 units that were 40% complete remained in production. How many units were completed during April?
Find the price elasticity of demand : Suppose the Theatre and Dance Department at OWU is considering changing the way they price tickets for their productions
How liziqi video express chiese traditional culture : Research question is how Liziqi's video express chiese traditional culture on Youtube. This is a part of the dissertation, so you don't need to write.
Find how much did shareholders initially invest in business : The company earned $71,500 during the first year, and distributed $26,000 to shareholders as dividends. Find how much did shareholders initially invest
Loss in consumer and producer surplus : If the government restricts output in this market to 24 units, what is the loss in consumer and producer surplus associated
Prepare internal memo addressed to the cfo : Prepare internal memo addressed to the CFO, Michelle Winters. In this memo, you will explain the associated with each variance

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd