Please review and answer the following questions in a word document:
1. During a five-year period, the ticket sales of a city’s professional basketball team have increased 30 percent at the same time that average ticket prices have risen by 50 percent. Do these changes imply an upward-sloping demand curve? Explain.
2. As economic consultant to the dominant firm in a particular market, you have discovered that, at the current price and output, demand for your lient’s product is price inelastic. What advice regarding pricing would you give?
3. There is an ongoing debate about the roles of quantitative and qualitative inputs in demand estimation and forecasting. Those in the qualitative camp argue that statistical analysis can only go so far. Demand estimates can be further improved by incorporating purely qualitative factors. Quantitative advocates insist that qualitative, intuitive, holistic approaches only serve to introduce errors, biases, and extraneous factors into the estimation task. Suppose the executive for the theater chain is convinced that any number of bits of qualitative information (the identity of the director, the film’s terrific script and rock-music sound track, the Hollywood “buzz” about the film during production, even the easing of his ulcer) influence the film’s ultimate box-office revenue. How might one test which approach—purely qualitative or statistical, provides better demand or revenue estimates? Are there ways to combine the two approaches? Provide concrete suggestions
4. List examples of goods and services that you would expect to have very elastic demand. List examples of goods and services that you would expect to have very inelastic demand. Compare these lists and identify the characteristics that determine elasticity.
5. Explain the difference between statistical significance and economic significance. Give an example from the chapter where a variable is statistically significant but is not economically significant.
Please provide your responses in a word document. Your response to each question should be 300-350 words in length. Make sure to follow APA style 7th edition format and include two external resources.
