What is the significance of the following elasticities for a cinema firm?

Question

Income elasticity for cinema visits (+2.5), Price Elasticity for cinema vists (-2.3), Cross Elasticity for cinema visits in respect the price paid for renting DVD films (+3.8), Cross Elasticity for cinema visits in respect the price paid for snacks and drinks sold at the cinema (+3.8)?

Answer 1

a) if people's incomes increase by 1%, then the number of visits will increase by 2.5%
b) if the price of a cinema ticket rises by 1%, the number of visits will fall by 2.3%
c) if the cost of a DVD rental rises by 1%, cinema visits will rise by 3.8%
d) if the cost of snacks rises by 1%, visits will rise by 1% (this last one doesn't make sense - are you sure its not -3.8?)

Look through these answers. Do you see how elastcities work? If not, send me an e-mail and I will try and explain in more detail.