Use the Table Below to Create a Nonlinear Model Based

question 57

Multiple Choice

Use the table below to create a nonlinear model based on the table to answer the following question(s) .
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.

-Which of the following is true of the nonlinear model created for the Atlas movie ticket repricing scenario?

• A)The projected revenue for the Gold class is infeasible within the price range provided.
• B)The projected value for most tickets sold is for the Silver class.
• C)The total projected tickets sold exceed the total seating capacity.
• D)The projected revenue is lowest for the Gold tickets.

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Definitions:

Per-Unit Subsidy

A government payment made for each unit of a product produced or sold, aimed at reducing the price or encouraging production.

Sales Tax

A tax imposed by government authorities on the sale of goods and services, typically calculated as a percentage of the purchase price.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a heavier burden on lower-income individuals.

OECD

An international organisation that works to build better policies for better lives, promoting policies that will improve the economic and social well-being of people around the world.