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a movie theater has been charging $10 per person and selling about 500 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 50 per night. Find the demand function and calculate the comsumer surplus when the tickets are $8.

Answer :

thewisestudent9

Hey!

Hope this helps...

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So we know that 10* 500 = 5000

And what we know (in estimates) is that about 800 extra people came in after the tickets were dropped to $8

We know this because it takes 16/2s to get to 8, and 16*50 = 800

And that 8 * 800 = 8,000

So 6,400 - 5,000 = 1,400

So we know that the theater made $1,400 extra after dropping the tickets to $8...

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