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A theater on Broadway recently increased the price of a ticket for a popular play by 8%

Economics

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A theater on Broadway recently increased the price of a ticket for a popular play by 8%.

The attendance went down by 3%. What is the price elasticity of demand for tickets for

this play? (2 points) What factors, besides the increase in the price of the ticket, could

have contributed to the reduction in attendance? (3 points) Should the theater further

increase or instead decrease the price of the ticket? What would be the optimal price of

a ticket?