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If the price for movie theater tickets went from $8 to $10 and the demand for...

If the price for movie theater tickets went from $8 to $10 and the demand for tickets fell from 200 / night to only 170/night. What will be the price elasticity of demand for tickets? Would you recommend that the theater raise prices again? Why?

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Answer #1

Since the demand is inelastic which means even in the very big change in price then there will not so much affect the quantity demanded .

There will be demand for tickets even with the highest change in price .

So I will recommend theatre to raise the price again.

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