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The number of seats in a cinema hall is decreased by 8% and also the price of the ticket is increased by 4 percent. What is the effect on the revenue collected?
  • a)
    increase 4.32%
  • b)
    decrease 4.32%
  • c)
    increase 3.32 percent
  • d)
    decrease 3.32%
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The number of seats in a cinema hall is decreased by 8% and also the p...
Let initially seats are 100 and price of each seat is 100, so total initial revenue = 10000
now, seats are 92 and price of each seat = 104, so total revenue = 92*104 = 9568
so percent change in revenue = (432/10000)*100 = 4.32 decrease
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Community Answer
The number of seats in a cinema hall is decreased by 8% and also the p...
Understanding the Changes in Revenue
The cinema hall's revenue is influenced by two main factors: the number of seats and the ticket price. Let's analyze the impact of the changes on revenue.
Initial Revenue Calculation
- Let the original number of seats be S.
- Let the original ticket price be P.
- Therefore, the original revenue (R) can be expressed as:
R = S * P
Changes in Seats and Prices
- The number of seats is decreased by 8%, so the new number of seats becomes:
New Seats = S - (8/100) * S = 0.92S
- The ticket price is increased by 4%, resulting in the new ticket price:
New Price = P + (4/100) * P = 1.04P
New Revenue Calculation
- The new revenue (R') is calculated as:
R' = New Seats * New Price
R' = (0.92S) * (1.04P)
R' = 0.9588 * (S * P)
Revenue Change Analysis
- The new revenue is approximately 95.88% of the original revenue:
Revenue Change = R' / R = 0.9588
- To find the percentage change in revenue:
Percentage Change = (R' - R) / R * 100
Percentage Change ≈ (0.9588 - 1) * 100 = -4.12%
- This indicates a decrease in revenue.
Conclusion
The decrease in revenue is about 4.12%, which closely aligns with option 'B', the decrease of 4.32%. Therefore, the cinema hall's adjustments lead to a reduction in overall revenue.
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The number of seats in a cinema hall is decreased by 8% and also the price of the ticket is increased by 4 percent. What is the effect on the revenue collected?a)increase 4.32%b)decrease 4.32%c)increase 3.32 percentd)decrease 3.32%Correct answer is option 'B'. Can you explain this answer?
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The number of seats in a cinema hall is decreased by 8% and also the price of the ticket is increased by 4 percent. What is the effect on the revenue collected?a)increase 4.32%b)decrease 4.32%c)increase 3.32 percentd)decrease 3.32%Correct answer is option 'B'. Can you explain this answer? for Electrical Engineering (EE) 2024 is part of Electrical Engineering (EE) preparation. The Question and answers have been prepared according to the Electrical Engineering (EE) exam syllabus. Information about The number of seats in a cinema hall is decreased by 8% and also the price of the ticket is increased by 4 percent. What is the effect on the revenue collected?a)increase 4.32%b)decrease 4.32%c)increase 3.32 percentd)decrease 3.32%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Electrical Engineering (EE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The number of seats in a cinema hall is decreased by 8% and also the price of the ticket is increased by 4 percent. What is the effect on the revenue collected?a)increase 4.32%b)decrease 4.32%c)increase 3.32 percentd)decrease 3.32%Correct answer is option 'B'. Can you explain this answer?.
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