Suppose the tampa bay rays baseball team charges $10 for bleacher seats (low quality seats in the outfield) and sells 250,000 of them over the course of the season. the next season, the rays increase the price to $12 and sell 200,000 tickets. a. what is the price elasticity of demand for bleacher seats at raysâ games? b. assuming the marginal cost of admitting one more fan is zero, is the price increase a good idea

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?