If the price elasticity of demand for movies by adults is 0.32 and that by teenagers is 2.5. What do you think the movie theater

Question

sergij07 [2.7K]

4 years ago

10

If the price elasticity of demand for movies by adults is 0.32 and that by teenagers is 2.5. What do you think the movie theater

should do to increase total revenue?

Social Studies

1 answer:

gregori [183] · Answer 1 · 2021-12-27T07:50:31+03:00

Answer:

Remove price elasticity.

Explanation:

The authorities of movie theater should remove price elasticity on the watching movies by adults and decrease to teenagers in order to increase total revenue of the movie theater because due to the removal and decrease of price elasticity, the adults and teenagers pay more money to the theater for watching movie which automatically increases the revenue of the movie theater.