The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well as tickets this month in an effort to increase revenues. Below, you are provided with prices for last month and this month as well as the quantities demanded for both months. Use this information when answering questions A-H, below. Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Tickets $8.00 $9.00 428 300 Calculate the price elasticity of demand for candy. (Show your work)
The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well as tickets this month in an effort to increase revenues. Below, you are provided with prices for last month and this month as well as the quantities demanded for both months. Use this information when answering questions A-H, below. Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Tickets $8.00 $9.00 428 300 Calculate the price elasticity of demand for candy. (Show your work)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well as tickets this month in an effort to increase revenues. Below, you are provided with prices for last month and this month as well as the quantities demanded for both months. Use this information when answering questions A-H, below.
|
Price |
Quantity Demanded |
|||||||
|
Item |
Last Month |
This Month |
Last Month |
This Month |
||||
|
Large Drink |
$6.00 |
$5.50 |
150 |
161 |
||||
|
Large Popcorn |
$7.50 |
$8.00 |
125 |
101 |
||||
|
Small Drink |
$2.50 |
$2.00 |
75 |
80 |
||||
|
Small Popcorn |
$5.00 |
$5.25 |
45 |
39 |
||||
|
Candy |
$4.00 |
$3.50 |
57 |
68 |
||||
|
Hot Dog |
$5.00 |
$5.25 |
35 |
36 |
||||
|
Movie Tickets |
$8.00 |
$9.00 |
428 |
300 |
- Calculate the price
elasticity of demand for candy. (Show your work)
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