Tuesday, July 1, 2014
Movie Theater Demand and Revenue
The Wall Street Journal reports that the price of movie theater tickets increased and the number of people that went to a movie decreased, which is the law of demand. Movie theater owners are considering decreasing ticket prices (one day a week), which is also consistent with the law of demand. Yet at the same time movie theater revenues increased which would mean that movie theater consumers are price inelastic.
Labels:
Price Elasticity
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