If the price elasticity of demand for movies by teenagers is 0.2 and that by adults is 2.0, then what policy would the theatre implement to increase total revenue? Make up data to illustrate your answer.© BrainMass Inc. brainmass.com October 10, 2019, 1:17 am ad1c9bdddf
first let me interpret what price elasticity of demand (ped) is. If ped is 5, this means that if price goes up by 10%, then the quantity demanded will fall by 50%.
A ped less than 1 is known as inelastic, which means consumers are ...