A baseball team plays in a stadium that holds 72000 spectators. With the ticket price at $8 the average attendance has been 29000. When the price dropped to $6, the average attendance rose to 36000. Assume that attendance is linearly related to ticket price. What ticket price would maximize revenue? $

A baseball team plays in a stadium that holds 72000 spectators. With the ticket price at $8 the average attendance has been 29000. When the price dropped to $6, the average attendance rose to 36000. Assume that attendance is linearly related to ticket price. What ticket price would maximize revenue? $

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 14SQ

See similar textbooks

Similar questions

A baseball team plays in a stadium that holds 70000 spectators. With the ticket price at $12 the average attendence has been 30000. When the price dropped to $11, the average attendence rose to 35000. Assume that attendence is linearly related to ticket price.What ticket price would maximize revenue? $
Question 20.span>20. Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game Price per Ticket Quantity Demanded $13 1,000 11 2,000 9 3,000 7 4,000 5 5,000 3 6,000 varies inversely with ticket prices. varies directly with ticket prices. is perfectly inelastic. is perfectly elastic.
The aggregate demand for a cup of coffee is given by g= 50,000 - 10,000 p, where p is the price of a cup of coffee. If the price is $2, then the price elasticity of demand for tickets is 0.666 0.333 1 1.5
A theater company presents a play in a theater with a capacity of 2,000 spectators. With the ticket price at $20, the average attendance at recent games has been 1,000. Market research indicates that for every dollar the ticket price drops, attendance will increase by 100. Identify the feature that maximizes ticket revenue.
A car show sells 100 tickets for $10 each. The car show wants to increase the price to increase the revenues. But, They have notice that the ticket sales decrease by 5 tickets each time the price increases by $5. What is the revenue equation? and What is the maximum revenue?
A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. At what price should the firm sell its product to maximize its total revenue?
In the past Peter Kelles tire dealership in Baton Rouge sold an average of 1100 radials each year. In the past 2 years 220 and 240 respectively were sold in fall 360 and 320 in winter and 140 and 160 in spring and 300 and 460 in summer. With a major expansion planned, Kelle projects sales next year to increase to 1300 radials. Based on next years projected sales the demand for each season is going to be (enter your responses as whole numbers) Season Demand Fall 272 Winter [__]
Consider Cowboys Stadium, a large football stadium that can seat approximately 80,000 people (and hold over 100,000 people), located in Arlington, Texas. If the Super Bowl, the game that determines pro football's champion team for the year, is played in Cowboys Stadium, the quantity of parking spots demanded will far exceed capacity. On a typical game day in the regular season, the quantity of parking spots demanded will only slightly exceed capacity. For smaller events, less than half of the parking spots are typically filled. Assume the marginal cost of providing another parking spot, once the parking lot has already been built, is $0 up to capacity. In the following table, match each event to the most likely pricing strategy per parking spot. see screemshot for chart
Question 20.span>20. Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game Price per Ticket Quantity Demanded $13 1,000 11 2,000 9 3,000 7 4,000 5 5,000 3 6,000 varies inversely with ticket prices. varies directly with ticket prices. is perfectly inelastic. is perfectly elastic. Question 21.21. Which of the following goods (with their respective income-elasticity coefficients in parentheses) will most likely suffer a decline in demand during a recession? Dinner at a nice restaurant (+1.8) Chicken purchased at the grocery store for preparation at home (+0.25) Facial tissue (+0.6) Plasma-screen and LCD TVs (+4.2) Question 22.22. The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600 4 650 5 700 What is the firm’s average variable cost at an output of 5 units? $30 $60 $120 $140 Question 24.24. v Any…
Using supply and demand, predict the impact on car prices if consumers income decrease. Group of answer choices -price decreases -not enough information -price increases -price stays the same
Term used to describe demand that can be accuratelycalculated to meet the need of a production schedule,for example.
Suppose the average age of Stanford Alumni increased at the same time the smaller stadium was built and the income elasticity of ticket sales is .5 Group of answer choices Tickets are an inferior good. If income increases with age, it is more likely the smaller stadium will increase total revenue because any increase in ticket revenue from the increase in prices will be reinforced by an increase in ticket sales from the higher income of Stanford Alumni. If income increases with age, it is less likely the smaller stadium will increase total revenue because any increase in ticket revenue from the increase in prices will be offset by a decrease in ticket sales from the higher income of Stanford Alumni.