When he does this, his marginal revenue from selling an extra seat is ____. The elasticity of demand for tickets at this price quantity combination is _____.

It seems you're dealing with a problem related to **marginal revenue** and **elasticity of demand**, likely in the context of pricing and sales for something like tickets.

To fill in the blanks, let's break down what is needed:

1. **Marginal Revenue (MR)**: This refers to the additional revenue a firm earns from selling one more unit of a good or service. The relationship between marginal revenue and elasticity of demand is critical here.

2. **Elasticity of Demand (Ed)**: This measures how sensitive the quantity demanded is to a change in price. It's calculated as:
   \[
   E_d = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}}
   \]

#### Relationship between MR and Ed:
Marginal revenue (MR) can be related to elasticity of demand (Ed) using the following formula:

\[
MR = P \left( 1 + \frac{1}{E_d} \right)
\]

Where:
- \( P \) is the price,
- \( E_d \) is the price elasticity of demand.

- If \( E_d > 1 \) (elastic demand), MR is positive.
- If \( E_d = 1 \) (unit elastic demand), MR is zero.
- If \(

When he does this, his marginal revenue from selling an extra seat is ____. The elasticity of demand for tickets at this price quantity combination is ____.

Learn how to calculate marginal revenue and elasticity of demand in pricing scenarios, using the relationship between revenue and demand elasticity. This problem covers key economic concepts for optimizing pricing strategies. Suitable for undergraduate students studying economics or business.

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