Question

If the price elasticity of demand for movies by adults is 0.32 and that by teenagers is 2.5. What do you think the movie theater should do to increase total revenue?

Answer 1

Remove price elasticity.

Step-by-step explanation:

The authorities of movie theater should remove price elasticity on the watching movies by adults and decrease to teenagers in order to increase total revenue of the movie theater because due to the removal and decrease of price elasticity, the adults and teenagers pay more money to the theater for watching movie which automatically increases the revenue of the movie theater.