12. The Vanier Cup, the finals of Canadian University football, was held on November 26, 2016at Tim Hortons Field in Hamilton, Ontario. The organizers learned a lot are already planningnext year's event! Based on what they learned this year, they know that the demand functionfor tickets to the game will be given by q = 200, 000 - 10, 000p, where p is the price chargedper ticket. The chief organizer for next year is an ambitious person who wants to set pricesso as to maximize revenue.(b)Write down an expression for the inverse demand function (price as a function ofquantity), total revenue (as a function of quantity), and marginal revenue (as a functionof quantity).Find the quantity and price that generate maximum revenue.(c) Derive an expression for the elasticity of ticket demand with respect to price. (Hint:your elasticity should be a function of the price, p.) What is the value of the elasticityat the revenue-maximizing price (your answer for price from part b)?

12. The Vanier Cup, the finals of Canadian University football, was held on November 26, 2016 at Tim Hortons Field in Hamilton, Ontario. The organizers learned a lot are already planning next year's event! Based on what they learned this year, they know that the demand function for tickets to the game will be given by q = 200, 000 – 10, 000p, where p is the price charged per ticket. The chief organizer for next year is an ambitious person who wants to set prices so as to maximize revenue. (a) Write down an expression for the inverse demand function (price as a function of quantity), total revenue (as a function of quantity), and marginal revenue (as a function of quantity). (b) Find the quantity and price that generate maximum revenue. Derive an expression for the elasticity of ticket demand with respect to price. (Hint: your elasticity should be a function of the price, p.) What is the value of the elasticity at the revenue-maximizing price (your answer for price from part b)?

12. The Vanier Cup, the finals of Canadian University football, was held on November 26, 2016 at Tim Hortons Field in Hamilton, Ontario. The organizers learned a lot are already planning next year's event! Based on what they learned this year, they know that the demand function for tickets to the game will be given by q = 200, 000 – 10, 000p, where p is the price charged per ticket. The chief organizer for next year is an ambitious person who wants to set prices so as to maximize revenue. (a) Write down an expression for the inverse demand function (price as a function of quantity), total revenue (as a function of quantity), and marginal revenue (as a function of quantity). (b) Find the quantity and price that generate maximum revenue. Derive an expression for the elasticity of ticket demand with respect to price. (Hint: your elasticity should be a function of the price, p.) What is the value of the elasticity at the revenue-maximizing price (your answer for price from part b)?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 3P

See similar textbooks

Similar questions

60 50 40 30 20 10 Comerica Park: 42,000 Capacity 10000 20000 MC 30000 40000 DL DH MRL MRH MRL and DL are for low-demand games. MRH and DH are for high-demand games. Based on the graph above, what is the total revenue for both games (high and low demand games) if the price is set at the low- demand price level?
I 60 50 40 30 20 10 Comerica Park: 42,000 Capacity 10000 20000 30000 MC 40000 DL DH MRL MRH MRL and DL are for low-demand games. MRH and DH are for high-demand games. Based on the graph above, what is the total revenue for both games (high and low demand games) if the price is set at the high- demand price level?
The Krampf Lines Railway Company specializesin coal handling. On Friday, April 13, Krampf hadempty cars at the following towns in the quantitiesindicated: Town Supply of Cars Morgantown 35 Youngstown 60 Pittsburgh 25 By Monday, April 16, the following towns will needthe numbers of coal cars listed: Town Demand for Cars Coal Valley 30 Coaltown 45 Coal Junction 25 Coalsburg 20 Using a railway city-to-city distance chart, the dis-patcher constructs a mileage table for the preceding towns. The result is shown in the table on this page.Minimizing total miles over which cars are movedto new locations, compute the best shipment of coalcars.
If Omer has sport hall for adults and children. The currently price per ticket is OR 5 for everyone (adults and children). His friend Ali who studied economics course in CCBA advises him that there may be another way of increasing your total revenue. Given the demand curves (adult demand and child demand) shown, Adult Demand Child Demand Price Price $10 $10 8. 7 7 6 5 4 3 3 2 1 1 10 20 30 40 50 60 70 80 90 100 Quantity 10 15 20 25 30 35 40 45 50 Quantity Answer the following questions from the above two curves. a. What is Omer's current total revenue for both groups (adults and children)? b. Which market has the more inelastic demand? d. Given the graphs and what your friend knows about economics, he recommends you increase the price of adult's ticket to $8 and lower the price of a child's ticket to $3. How much could you increase total revenue if you take his advice?
Say that a certain stadium for professional football has 70,000 seals. What is the shape of the supply curve for tickets to football games at that stadium? Explain.
I need help filling out the this Table, i need helpwith the more revenue and least revenue boxes filled out. Predicting Consequences Use the table below to predict what would happen if airlines and baseballstadiums priced all seats the same instead of using variable pricing. What would happen to the number of tickets sold? What would happen to the total revenue from ticket sales? Assume stadiums areusing variable pricing and aren't completely sold out or completely empty. What would change ifseats were sold at the lowest prices? Highest prices? Variable prices?
The supply and demand schedules for tickets to basketball games in town of Oakwood are given in the table below.Price Quantity DemandedQuantity Supplied$65,0002,00074,0002,00083,0002,00092,0002,000101,0002,000The stadium owners need to find the optimum price for the games.What are the coefficients of elasticity of supply and demand if the price is raised from $6 to $8?
q= 2015 – 90p+p3 for O£ PE 40 q is the number of copres of the game that they caneypect to sell Cn thousants of cans) and pis the price of the game m dollors ) Find a prce elastiaity of demant queston Rrom this demant equatio n lallit E) *5kip this b> what wauk the pnce clasticity of demand that con be cxpcctcet if the gare 15 Sold for $ 25? s the demcind elastrc or melastic at this price? C.) what prce should the gane be sold at to get unit elasttcity of dnand? d) what quantity of games snoud be sot to get marmum revenue?
The supply and demand schedules for tickets to basketball games in town of Oakwood are given in the table below.Price Quantity DemandedQuantity Supplied$65,0002,00074,0002,00083,0002,00092,0002,000101,0002,000The stadium owners need to find the optimum price for the games.What are the coefficients of elasticity of supply and demand if the price is raised from $6 to $8? Characterize the demand and supply for tickets based on the calculated elasticies. What is the optimum price that the stadium owners can set for the tickets? Why is the selected price for the tickets better than other prices given in the table above?
On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per bike. 1280 1200 Total Revenue 1120 - 1040 980 880 800 720 640 560 o15 30 45 60 75 90 105 120 135 150 165 180 PRICE (Dollars per bike) According to the midpoint method, the price elasticity of demand between points A and B is approximately ▼ Suppose the price of bikes is currently $30 per bike, shown as point B on the initial graph. Because the demand between points A and B is a $15-per-bike increase in price will lead to in total revenue per day. In general, in order for a price decrease to cause a decrease in total revenue, demand must be TOTAL REVENUE (Dollars)
100 80 60 40 20 40 80 120 160 200 Refer to the diagram. The equation that shows the relationship between Y and x is OAy= 50 + 4X OB.X = %Y. OCy=X-50. OD.y = 4X. QUESTION 26 In the market for T shirts, the Milwaukee Bucks win the NBA which of the following is most likely to happen? O A. The demand curve for Milwaukee Ducks' T shirts will shift to the left O E. The supply curve for Milwaukee Bucks' T shiris will shift to the right OL The supply curve for Milwaukee Bucks'T shirts will shift to the left O D. The demand curve for Milwaukee Ducks' T shirts will shift to the right QUESTION 27 Consider the following data for a hypothetical economy: Year Real GDP Population $5000 billion 200 million 2 $6000 billion 250 million What is the economic growth rate for GDP per capita for this economy for year 2? OA 20% OB. 20% OC 49% O D. 4%
9. Application: Elasticity and hotel rooms The Inlinwing graph input tool shows the daily demand for hotel moms at the Oceans Hotel and Casino in Atlantic City, New Jersey. To help the hotel management better understand the market, an woonomist identified three primary factors that affect the demand for me ach night. The demand factum, lung with the values corresponding to the initial demand curve, are shown in the following table and alungside the graph input tool. Demand Factor Average American household income Roundtrip airfare from New Orleans (MSY) to Atlantic City (ACY) Room ratu at the Meadows Hotel and Casino, which is near the Ocean Use the graph input tool to help you answer the following questions. You wil not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Show Transcribed Text 600 450 ****** 100 0 Demand ++ 55155 366 350 351 350 100 ans…