A research firm's findings concluded that the demand for movie tickets is price elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should
a. Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows
b. Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows
c. Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
d. Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
Question 2
The Nash equilibrium is
a. a pair of strategies, one for each player , in which player A's strategy is the best response while player B's is not
b. a pair of strategies, one for each player , in which player B's strategy is the best response while player A's is not
c. a pair of strategies, one for each player, in which each player's strategy is the best response to the other's
d. a pair of strategies, one for each player, in which neither strategy is a best response
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