Question

A 2014 report from the Motion Picture Association of American said that revenue rose to $10.9 billion in 2013 from $10.8 billion in 2012 even though the number of tickets sold fell from 1.36 billion to 1.34 bllion. The reason that revenue increased was that the average U.S. movie ticket price rose from $7.96 in 2012 to $8.13 in 2013. Assuming that the demand curve remained stable, use a diagram to show why revenue rose. Label the dollar values of the various areas on the diagram appropriately 8.13 In the figure to the right, shade in the increase in revenue (C), if any, and the decrease in revenue (B), if any, from increasing price from $7.96 to $8.13 using the rectangle drawing tool. 1.) Using the rectangle drawing tool, shade in original revenue, when the ticket price is $7.96. Label this area "A+B. 2.) Using the rectangle drawing tool, shade in revenue when the ticket price is $8.13. Label this area "A+C." 7.96 3.) Using the rectangle drawing tool, shade in the increase revenue, if any, from the ticket price increase. Label any increase in revenue "C." 4.) Using the rectangle drawing tool, shade in the loss of original revenue, if any, from the ticket price increase. Label any loss in revenue "B." Carefully folow the instruction above, and only draw the required objects. 1.34 1.36 Q, Units per year

Answer 1