1. What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?
a. The cost of manufacturing corporate jets rises.
b. Reduced corporate earnings lead to cuts in travel budgets and increase the share of expenditures on corporate jet travel.
2. Since the movie, Avatar, 3-D movies have been popular and charged at a higher price, compared with the traditional 2-D movies. Please analyze the impact of 3-D movies on
a. Price elasticity of demand on 2-D movies.
b. Total revenue (including 2-D and 3-D movies) of theater box offices.