Use the Table Below to Create a Nonlinear Model Based

question 34

Multiple Choice

Use the table below to create a nonlinear model based on the table to answer the following questions) .
The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They have three classes of tickets: Classic, Silver, and Gold. The table below provides information on the average ticket sales, revenue and price elasticity on demand. They have a total seating capacity of 300. The table also provides the price range within which they plan to reduce their ticket rates. $$\begin{array} {| l | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Atlas Mavie } \\\text { Theater } \\\text { Ticketing }\end{array} & & & & & & \\\hline & & & & & & \\\hline \text { Data } & & & & & & \\\hline & & & & & & \\\hline \text { Ticket Class } & \begin{array} { l } \text { Current } \\\text { Rate }\end{array} & \begin{array} { l } \text { Avernge } \\\text { Daily } \\\text { Sald }\end{array} & \text { Elasticity } & \begin{array} { l } \text { Tatal } \\\text { Seating } \\\text { Capacity }\end{array} & { \text { Price Range } } \\\hline \text { Classic } & \$ 8.45 & 150 & - 1.5 & 300 & \$ 6.50 & \$ 7.50 \\\hline \text { Silver } & \$ 13.25 & \mathbf { 8 0 } & - 2 & & \$ 1.50 & \$ 12.50 \\\hline \text { Gald } & \$ 17.50 & \mathbf { 3 0 } & - 1 & & \$ 15.50 & \$ 16.50 \\\hline\end{array}$$
-According to the nonlinear model, which of the following is the projected revenue figure for Classic tickets based on its new price?

• A) $1,314.72
• B) $1,116.03
• C) $521.68
• D) $1,312.52

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Definitions:

Unilateral Mistake

The result of an error by one party about a material fact, that is, one that is important in the context of a particular contract.

Genuine Assent

An agreement to enter into a contract that is not clouded by factors such as fraud, duress, or mistake, indicating true and voluntary agreement.

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into a contract.

Undue Influence

The situation in which one person has taken advantage of his or her dominant position in a relationship to persuade the other person unduly to the extent that the dominant person’s persuasive efforts have interfered with the other person’s ability to make his or her own decision.