The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group of local organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit Ceres, a non-profit, national network of investors and environmental organizations working with companies and investors to address sustainability challenges such as global climate change. If the pavilion management agrees to host the concert, the organizers will donate all profits to Ceres (or absorb any losses).

Based on the following revenue and cost information, the organizers would like you to answer the question.

There are three sources of revenue for the concert:

1. Tickets will be sold for $14.00 each.
2. A large multinational corporation headquartered in Chicago will donate $2.00 per ticket sold.
3. Each concert attendee is expected to spend an average of $17.00 for parking, food, and merchandise. [Assume that everyone who buys a ticket will attend the concert.]

On the expense side, there are also three components:

1. A popular national group has agreed to perform at the concert. Normally, the group demands a significant fixed fee to perform, but to reduce the risk for the organizers, the group has agreed to perform for $5.50 per ticket sold.
2. The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $21,000 plus 14% of all parking, food, and merchandise revenue.
3. The organizers will pay the pavilion $85,000 plus $8.00 per person attending to cover its operating expenses (production, maintenance, advertising, etc.).

REQUIRED [ROUND YOUR CM ANSWER TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.]

Assume that the organizers can negotiate the fixed payment for the pavilion's operating expenses. If the organizers expect to sell 8,000 tickets, how much can they afford to pay and still earn a profit of $90,000 (ignore taxes)?

The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group of local organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit Ceres, a non-profit, national network of investors and environmental organizations working with companies and investors to address sustainability challenges such as global climate change. If the pavilion management agrees to host the concert, the organizers will donate all profits to Ceres (or absorb any losses).

Based on the following revenue and cost information, the organizers would like answers to several questions.

There are three sources of revenue for the concert:

1. Tickets will be sold for $16.00 each.
2. A large multinational corporation headquartered in Chicago will donate $2.00 per ticket sold.
3. Each concert attendee is expected to spend an average of $19.00 for parking, food, and merchandise.

On the expense side, there are also three components:

1. A popular national group has agreed to perform at the concert. Normally, the group demands a significant fixed fee to perform, but to reduce the risk for the organizers, the group has agreed to perform for $5.50 per ticket sold.
2. The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $23,000 plus 13% of all parking, food, and merchandise revenue.
3. The organizers will pay the pavilion $90,000 plus $6.00 per ticket sold to cover its operating expenses (production, maintenance, advertising, etc.)

Assuming a tax rate of 31% on profits from the concert, what must dollar ticket sales be in order for after-tax concert profits to be $90,000?

Assume that the organizers can negotiate the fixed portion of the pavilion's operating expenses. If the organizers expect to sell 9,000 tickets, how much operating fixed costs can they afford to pay and still earn a profit of $90,000 (ignore taxes)?

2. If the data represent all customers visiting one of the Pelican store in a day a. Estimate a 97% confidence interval estimate for the age of customers. b. Estimate a 96% confidence interval estimate of the proportional of customers who paid by the Proprietary Card.

At a certain fast food restaurant, 77.5% of the customers order items from the value menu. If 14 customers are randomly selected, what is the probability that at least 9 customers ordered an item from the value menu? Use Excel to find the probability.

A store surveys customers to see if they are satisfied with the service they receive. Samples of 75 surveys are taken. One in six people are unsatisfied. What is the variance of the mean of the sampling distribution of sample proportions for the number of unsatisfied customers? What is the variance for satisfied customers?

According to the law of demand, if price increases, quantity demanded of a good or service will decrease or vice versa. Price elasticity of demand tells us how much quantity demanded will decrease when price increases or how much quantity demanded will increase if price decreases.On the other hand, according to the law of supply, if the price increases, quantity supplied of a good or service will increase. Similarly, if price decreases, quantity supplied will decrease. The degree of sensitivity (responsiveness) of production/supply to a change in price is measured by the concept of price elasticity of supply.Total revenue is calculated as the quantity of a good or service sold multiplied by its market price. Thus, it is a measure of how much money a company makes from selling its product. The core objective of a firm is maximizing profit. One of the ways to maximize profit is increasing total revenue. The firm can increase its total revenue by selling more items or by raising the price. Among others, this depends on the nature of the price elasticity of demand. Moreover, the length of time is an important factor in determining price elasticity of demand and supply.

Explain the relationship between the price elasticity of demand and total revenue. What are the impacts of various forms of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions and strategies to maximize profit? Explain your responses using empirical examples, formulas, and graphs.

● Is the price elasticity of demand or supply more elastic over a shorter or a longer period of time? Why? Give examples.

● What are the impacts of government and market imperfections (failures) on the price elasticities of demand and supply?

please list any references used

1:A brand of dress shoes was put on sale for 20% off. This led to an increase of sale by 15%. The price elasticity of demand for this product is

2:

The concept of cross-price elasticity is used to examine the responsiveness of demand

3:

When the cross-price elasticity EPX = 3

4:

With elastic demand, a price increase will

5:

A direct relation between the price of one product and the demand for another holds for all

6:

According to the law of diminishing marginal utility

e) Suppose that the video streaming service is charging the price that maximizes its total revenue, but the city government imposes an excise tax on videos that results in the price of videos rising to $3.50. As a result, the demand for movies increases by 20 at each price.

g) Given the circumstances in (e), what is the cross elasticity of movies for videos? What does this say about the relationship between the two products? Round your answer to 2 decimal places.

Elasticity:    .

h) Referring to the original data in the table given below, assume now that the average weekly earnings of the townspeople rise from $700 to $800, with the result that the demand for movies increases by 10 percent. If the price being charged is $6, what is the income elasticity of demand? What does this suggest about the product, movies? Round your answer to 2 decimal places.

Elasticity:   .

Problem 19-01

Management believes it can sell a new product for $8.50. The fixed costs of production are estimated to be $5,500, and the variable costs are $3.50 a unit.

1. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any.

   Quantity		Total Revenue	Variable Costs	Fixed Costs	Total Costs	Profits (Losses)
   0		$	$	$	$	$
   500		$	$	$	$	$
   1,000		$	$	$	$	$
   1,500		$	$	$	$	$
   2,000		$	$	$	$	$
   2,500		$	$	$	$	$
   3,000		$	$	$	$	$

2. Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break-even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs, and profits (losses) to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any.

   Quantity	Total Revenue	Variable Costs	Fixed Costs	Total Costs	Profits (Losses)
   	$	$	$	$	$

3. What would happen to the total revenue schedule, the total cost schedule, and the break-even level of output if management determined that fixed costs would be $7,500 instead of $5,500? Round your answer for the break-even level of output to the nearest whole number.

   If fixed costs were $7,500 instead of $5,500 the total revenue schedule does not change and the total cost schedule increases.

   The new break-even level of output is   units.