In the town of "One Horse" there is one movie theater. Two groups of consumers, adults (A) and children (C), attend this theater. Suppose the demand for movies by adults is given by: Q - 50 - 0.50P where P, is price of an adult movie ticket (in cents) and Q, is the number of movie tickets sold to adults at the theater. Suppose the demand for movies by children is given by: Qc = 20 - 0,50Pc. where Pe is price of a children's movie ticket (in cents) and Qe is the number of movie tickets sold to children at the theater. Also, imagine total cost is fixed at $450, thus making marginal cost of providing one more movie ticket to either an adult or a child constant at zero. (29] If the movie theater is able to price diseriminate among its two groups of consumers, then it should charge a higher price to group A. A. True В. False (30] If the movie theater is able to price discriminate among its two groups of consumers, then its maximum profit is closest in value to: А. $800 В. $850 С. $900 D. $1200 (31] If the movie theater is able to price discriminate among its two groups of consumers, then which group has the highest price elasticity of demand (in absolute value)? А. В. [32] In a famous song by Dionne Warwick, Dionne sings "What's it all about Alfie? Is it just for the moment we live?". Suppose Alfie responds, "No, I care as much about tomorrow as I do today". Accordingly, from Alfie's perspective, his discount factor (8) equals: А. В. C. D. (33] A firm must have some ability to control price to engage in price discrimination. A. True False
In the town of "One Horse" there is one movie theater. Two groups of consumers, adults (A) and children (C), attend this theater. Suppose the demand for movies by adults is given by: Q - 50 - 0.50P where P, is price of an adult movie ticket (in cents) and Q, is the number of movie tickets sold to adults at the theater. Suppose the demand for movies by children is given by: Qc = 20 - 0,50Pc. where Pe is price of a children's movie ticket (in cents) and Qe is the number of movie tickets sold to children at the theater. Also, imagine total cost is fixed at $450, thus making marginal cost of providing one more movie ticket to either an adult or a child constant at zero. (29] If the movie theater is able to price diseriminate among its two groups of consumers, then it should charge a higher price to group A. A. True В. False (30] If the movie theater is able to price discriminate among its two groups of consumers, then its maximum profit is closest in value to: А. $800 В. $850 С. $900 D. $1200 (31] If the movie theater is able to price discriminate among its two groups of consumers, then which group has the highest price elasticity of demand (in absolute value)? А. В. [32] In a famous song by Dionne Warwick, Dionne sings "What's it all about Alfie? Is it just for the moment we live?". Suppose Alfie responds, "No, I care as much about tomorrow as I do today". Accordingly, from Alfie's perspective, his discount factor (8) equals: А. В. C. D. (33] A firm must have some ability to control price to engage in price discrimination. A. True False
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
Related questions
Question
help solve 32 and 33
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning