You own a small town movie theatre. You currently charge $5 per ticket for everyone who comes to your movies. Your friend who took an economics course in college tells you that there may be a way to increase your total revenue. Given the demand curves shown, answer the following questions. 
a. What is your current total revenue for both groups?
b. The elasticity of demand is more elastic in which market?
c. Which market has the more inelastic demand?
d. What is the elasticity of demand between the prices of $5 and $2 in the adult market? Is this elastic or inelastic?
e. What is the elasticity of demand between $5 and $2 in the children's market? Is this elastic or inelastic?
f. Given the graphs and what your friend knows about economics, he recommends you increase the price of adult tickets to $8 each and lower the price of a child's ticket to $3. How much could you increase total revenue if you take his advice?
Definitions:
Total Sales
This figure represents the aggregate revenue a company generates from selling its goods or services within a specific period.
Costs
The value of financial resources consumed in the production of goods or services, including material, labor, and overhead expenses.
Net Income
This is the total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.
Interest Expense
The cost incurred by an entity for borrowed funds, typically expressed as an annual percentage rate on loans or bonds.
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