Price Elasticities - Popcorn

Related BrainMass Solutions

• This post addresses the Mid-Atlantic Cinema economics case.

  By offering half off its regular $9 admission price, average nightly attendance has risen from 500 to 1,500 persons. Popcorn and other concessions revenues tied to attendance have also risen dramatically.

• Supply Curve Elasticity

  The price of lemonade is $.50 and price of popcorn is $1.00.

• Flower shops and price elasticity

  To really understand it, compute the following price elasticities of demand: a) The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.

• Implications and uses of cross price elasticities.

  156715 The accompanying table lists the cross-price elasticities of demand for several goods.

• Elasticities of demand and supply: Calculation Methods

  The elasticities shown in the calculation are: price elasticity of demand, income elasticity of demand and advertising elasticity of demand.

• The demand curve

  How would popcorn consumption be affected? Figure 5.7 pro- vides an answer. Before the change in income, consumers demanded 12 ounces of popcorn at a price of 25 cents per ounce.

• Price, Income and Cross Price Elasticities

  The price elasticity, e(Q,P) B. The income elasticity, e(Q,I) C. The cross price elasticity, e(Q,P') Please see the attached file. This solution looks at economic elasticities (price, income, cross price).

• Marginal revenue - Positive, negative, or zero?

  The Solution determines whether marginal revenue is Positive, Negative or Zero for the given price elasticities.

• Point price elasticity of demand for tourist customers

  b) Calculate point price elasticities of demand for each customer class at the activity levels identified in part A. Are the differences in these elasticities consistent with your recommended price differential? Explain.