A movie theater has been charging $10.00 per person and selling about 500 tickets on a typical weeknight. After surveying their customers, the theater management estimates that for every 50 cents that they lower the price, the number of movie goers will increase by 50 per night. Find the demand function and calculate the consumer surplus when the tickets are priced at $8.00.
Chapter 12 and 13 Review Key Terms Aggregate demandaggregate supply (ADAS) modelThe macroeconomic model that uses aggregate demand and aggregate supply to determine and explain the price level and the real domestic output Aggregate demandA schedule or curve that shows the total quantity of goods and services demanded (purchased) at different price levels. Factors such as consumption spending, investment, government spending, and net exports that, if they change, shift the aggregate demand curve. Realbalances effectThe tendency for increases in the price level to lower the real value (or purchasing power) of financial assets with fixed money value and, as a result, to reduce total spending and real output, and conversely for decreases in the price level. Int