Demand function and consumer surplus


Question: A movie theater has been charging $7.50 per person and selling about 400 tickets on a typical weeknight. After surveying their customers, the theater estimates that for every 50 cents that they lower the price, the number of moviegoers will increase by 35 per night. Find the demand function and calculate the consumer surplus when the tickets are priced at $6.00.

Solution Preview :

Prepared by a verified Expert
Microeconomics: Demand function and consumer surplus
Reference No:- TGS0703899

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)