7. Phillip sold 1200 tickets for the holiday concert at Earl Haig for $20 per ticket. His committee is planning to increase the prices this year. Their research has shown that for each $2 increase in the price of the tickets, 60 fewer tickets will be sold. a) What should Phillip's committee sell each ticket for, to maximize their revenue?

7. Phillip sold 1200 tickets for the holiday concert at Earl Haig for $20 per ticket. His committee is planning to increase the prices this year. Their research has shown that for each $2 increase in the price of the tickets, 60 fewer tickets will be sold. a) What should Phillip's committee sell each ticket for, to maximize their revenue?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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#4 Determining the price elasticity of demand of a product involves all of the following factors, but NOT the total number of firms in a market. the availability of substitutes to the product. whether the product is a luxury or a necessity.
Price (dollars) 8 7 D. 5 10 15 20 25 30 35 Quantity (units per year) In the figure above, when the price falls from $8 to $7, total revenue A) decreases from $210 to $120 so demand is inelastic. B) increases from $120 to $210 so demand is inelastic. C) decreases from $210 to $120 so demand is elastic. D) increases from $120 to $210 so demand is elastic. 6
a. Define price elasticity of demand, and cross-price elasticity of demand. b. If the cross-price elasticity of demand between two goods is negative (EXY<0), what can be said about the relationship between these two goods? c. If the Boston Red Sox know that the demand for their tickets is elastic (ED>1), should they increase or decrease the price of their tickets in order to increase total revenue? Explain.
Answer 4 to 6. Thank you
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Question 4 (A) Explain the factors that affect the price elasticity of demand for a product.
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