A Movie Theater Has Been Charging $\$ 9.00$ Per Person and Selling About 300 Tickets on a Typical

question 49

Short Answer

A movie theater has been charging $\$ 9.00$ per person and selling about 300 tickets on a typical weeknight. After surveying their customers, the theater estimates that for every $\$ 1$ that they lower the price, the number of moviegoers will increase by 40 per night. Find the demand function and calculate the consumer surplus when the tickets are priced at $\$ 4$ .

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Definitions:

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of unions that represents workers.

Manufacturing Labor Market

The sector of the labor market focused on jobs involved in the production and fabrication of goods.

Unionized

Referring to workers or an industry segment that is organized into a union, which negotiates wages, work conditions, and other employment terms on behalf of its members.

Excess Supply

The situation in a market where the quantity of a good or service offered by producers exceeds the quantity demanded by consumers at the prevailing price.