A minor league baseball is in the process of determining its ticket pricing policy. Past data suggests the following ticket sales elasticities: ticket price: -0.6; refreshments price -0.2; local population 0.7
a) if the local pop increases from 60,000 to 61,500 what will be the impact on ticket sales? what if refreshment prices rise 40% on average?
b) currently fans pay ave ticket price $5 and consumes $4 worth of refreshments at the game. Management thinking of raising the ticket price to $5.50. Compute the % in 1) tickets sold 2) ticket revenue 3) total revenue from admissions and refreshment sales