Hi all please help me to find the best way to solve this question I have a solution but I don't know how can I calculate it Thanks
Management of first league football team want to calculate number of tickets sold in the next session and think about changing price of the tickets.
a). Elasticity of demand of tickets related to local population is about 0,7. Explain what does it mean. What will be the planning amount of sold tickets when the population in the town will change from 60000 to 61000? (1,16%)
b). Average fan pays nowadays 5 $ per ticket. Price elasticity of demand is (–) 0,6. Management wants to increase the price to 5,5 $. Calculate the percentage change of sold tickets. Do you expect increase or decrease of total revenue from sold tickets? (-6% ; 5q to 5,17 q)
c). Average fan during football match spends 4$ on beer. When the ticket price equals 5$ total revenue per fan is 9$. Calculate if the increase of ticket price to 5,5$ will cause increase or decrease or total revenue for the club. (9q to 8,93q)