Please help with Question F and kindly provide solutions. thank you Ivan runs a small independent movie theatre in Scarborough, which presently attracts 1,000 customers per week at a ticket price of $6.His customer base comprises 800 adult customers and 200 seniors. He would like to increase his total revenue by practising pricediscrimination. He knows that the demand by adults is fairly inelastic and that a change in the admission price of $1 would change thequantity by 90 customers. He also recognizes that the demand by seniors is fairly elastic and a $1 change in the price would result in achange of 60 customers.AdultsSeniorsTotalRevenueTotalPriceQuantityQuantityRevenue$24B0048002001200a. From this information, complete the table above.b. What is Ivan's present total revenue?Total revenue: $6000c. Should he increase or decrease the price for adults? Should he increase or decrease the price for seniors?Adults: IncreaseSeniors: Decreased. What price will maximize the total revenue from adult customers?Adult price: $|e. What price will maximize the total revenue from seniors?Seniors' price: $|f. What will be the total revenue from both groups?Total revenue: $Total revenue from adults: $Total revenue from seniors: $

Since you have asked only the sub-part 'F' question, we will solve the part of the question for you.…

Ivan runs a small independent movie theatre in Scarborough, which presently attracts 1,000 customers per week at a ticket price of $6. His customer base comprises 800 adult customers and 200 seniors. He would like to increase his total revenue by practising price discrimination. He knows that the demand by adults is fairly inelastic and that a change in the admission price of $1 would change the quantity by 90 customers. He also recognizes that the demand by seniors is fairly elastic and a $1 change in the price would result in a change of 60 customers. Seniors Total Adults Total Price Quantity Revenue Quantity Revenue $2 4000 200 a. From this information, complete the table above. b. What is Ivan's present total revenue? Total revenue: $ 0000 c. Should he increase or decrease the price for adults? Should he increase or decrease the price for seniors? Adults: Increase Seniors: Decrease d. What price will maximize the total revenue from adult customers? Adult price: $[ e. What price will maximize the total revenue from seniors? Seniors' price: $| f. What will be the total revenue from both groups? Total revenue: $ Total revenue from adults: $ Total revenue from seniors: $

Ivan runs a small independent movie theatre in Scarborough, which presently attracts 1,000 customers per week at a ticket price of $6. His customer base comprises 800 adult customers and 200 seniors. He would like to increase his total revenue by practising price discrimination. He knows that the demand by adults is fairly inelastic and that a change in the admission price of $1 would change the quantity by 90 customers. He also recognizes that the demand by seniors is fairly elastic and a $1 change in the price would result in a change of 60 customers. Seniors Total Adults Total Price Quantity Revenue Quantity Revenue $2 4000 200 a. From this information, complete the table above. b. What is Ivan's present total revenue? Total revenue: $ 0000 c. Should he increase or decrease the price for adults? Should he increase or decrease the price for seniors? Adults: Increase Seniors: Decrease d. What price will maximize the total revenue from adult customers? Adult price: $[ e. What price will maximize the total revenue from seniors? Seniors' price: $| f. What will be the total revenue from both groups? Total revenue: $ Total revenue from adults: $ Total revenue from seniors: $

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 6MC

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