Home » Chapter 4 7. The director of a theater company in a small college town is considering changing the way he prices tickets. He has hired an economic…

# Chapter 4 7. The director of a theater company in a small college town is considering changing the way he prices tickets. He has hired an economic…

Chapter 4 7. The director of a theater company in a small college town is considering changing the way he prices tickets. He has hired an economic consulting firm to estimate the demand for tickets. The firm has classified people who go to the theater into two groups and has come up with two demand functions. The demand curves for the general public (Qgp) and students (Qs) are given below:Qgp=500 – 5PQs = 200 – 4Pa Graph the two demand curves on one graph, with P on the vertical axis and Q on the horizontal axis. If the current price of tickets is \$35, identify the quan tity demanded by each group.b. Find the price elasticity of demand for each group at the current price and quantity.c. Is the director maximizing the revenue he collects from ticket sales by charging \$35 for each ticket?/ Explain.What price should he charge each group if he wantsto maximize revenue collected from ticket sales?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.