Suppose You Are the Manager of a Theatre

question 108

Essay

Suppose you are the manager of a theatre.You currently charge the same admission price to all customers, regardless of age.You hire an economist to determine the price elasticity of demand for admissions by age and he tells you that at the current price, demand by adults is inelastic and demand by children is elastic.If you want to increase your total revenue by adjusting admission prices, how should they be adjusted?

---

Definitions:

Stratum Basale

The deepest layer of the epidermis, consisting of a single row of cells primarily responsible for generating new skin cells.

Stratum Corneum

Most superficial layer of the epidermis consisting of flat, keratinized, dead cells.

Epidermis

The outermost layer of skin, serving as a protective barrier against environmental hazards such as pathogens and physical abrasions.

Collagen

The main structural protein found in skin and other connective tissues, known for its strength and elasticity.