1) (10 pts) A real world scenario: Atlanta Falcons and concession pricing. Watch this clip and answer the following questions. If hot dog sales increased by 53% and the price of hot dogs decreased by approximately 60% (from approximately $5 to $2). What is the own-price elasticity of demand for hot dogs? Based on the elasticity you calculated in part a, would you expect revenue to increase or decrease with this decrease in hot dog prices? Explain. Does your expectation match what happened during Atlanta Falcons games? Why did Atlanta promise to continue with these low prices in the following year (including the Super Bowl!) despite your expectation and their findings? To help you answer this question, answer the following: Atlanta merchandising (increased/decreased) by _____%. What is the relationship between concessions and merchandising (complements or substitutes)? If concession elasticity equals the elasticity you calculated for hot dogs in part a, quantity of food equal 1000 (Pfood=$2), price of merchandise equals $50, the quantity of merchandise equals 500, and the cross-price elasticity between merchandise and food is -1.76, would you recommend to increase or decrease food prices by 1%? What happens to total revenue (be specific)? So…why did Atlanta make their promise?