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gregori [183]
3 years ago
5

To conduct an experiment, a movie theater increased movie ticket prices from $9 to $10 and measured the change in ticket sales.

The theater then gathered data over the following month to determine whether the price increase was profitable. Assume total costs to the theater are the same, whether the price of a ticket is $9 or $10.
In order for the ticket price to have been profitable over the month, the elasticity of demand for movie tickets must be (INELASTIC OR ELASTIC) .

Demand curves become (MORE OR LESS) elastic in the long run. This means that the ticket price increase will likely be (MORE OR LESS) profitable in the long run.
Business
1 answer:
AleksandrR [38]3 years ago
7 0

Answer:

1. The elasticity of demand for movie tickets must be INELASTIC.

2. Demand curves become LESS elastic in the long run. This means that the ticket price increase will likely be MORE profitable in the long run.

Explanation:

1. As demand is inelastic, the percentage of price increase will be greater than the decrease in the quantity of tickets demanded, and consequently profit will increase.

2. In the long term, demand becomes inelastic. Consequently, in the long term the percentage of the price increase will continue to be greater than the percentage of decrease in the quantity of tickets demanded.

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In July 2008, the average price of gasoline in the United States was $4.09 per gallon and consumers bought 6 percent less gasoli
Basile [38]

Answer:

PED= 0.1571

Explanation:

The price elasticity of demand (PED) indicates how the quantity demanded change when the price changes. Is defined by this equation:  

Price Elasticity of Demand = Percentage change in Q/ Percentage change in P  

In this case, the problem is giving percentage changes in Q but we must calculate the percentage change in price:

%Change in price = ( p2-p1/p1)*100= ($4.09-$2.96)/$2.96= 0.3817*100=38.17%

%Change in quantity is= -6%

PED= -6%/38.17%

In absolute value:

PED= 0.1571

If the PED is less than 1 then gasoline is considered as inelastic.

6 0
3 years ago
State and briefly axplain five contribution of scientific management to modern management practices​
butalik [34]

Answer:

One of the greatest contributions of scientific management in today's organization is increasing the productivity. Scientific management focuses on the activities performed by the workers in an organization. The importance of this was that scientific management makes the workers or employees efficient

4 0
3 years ago
Gilson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and
Ann [662]

Answer:

a. $2,020 Favorable

Explanation:

The computation of spending variance for direct materials in April is shown below:-

For computing the spending variance for direct materials in April first we need to find out the actual price per unit which is here below:-

Actual price per unit = Actual direct material ÷ Actual units purchased

= $49,086 ÷ $5,060

= $9.70

Spending variance for direct materials in April = (Actual price per unit - Standard price per unit) × Actual quantity

= ($9.70 - $10.10) × 5,060

= -$0.4 × 5,060

= $2,024 Favorable

which is closest to $2,020 Favorable.

3 0
3 years ago
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