Interviewer view · keep this screen to yourself
A cinema raises its ticket price
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
A cinema in Spain raises its ticket price from EUR 10 to EUR 11. Weekly tickets sold fall from 1,000 to 850. Was the price rise a good idea for revenue?
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Compare revenue before and after, and calculate the elasticity
- Revenue = price x tickets
- Elasticity = percent change in tickets / percent change in price
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Revenue before
What a strong candidate does: EUR 10 times 1,000 tickets.
Weekly revenue before (EUR): 10 × 1,000 = 10,000
Step 2: Revenue after
What a strong candidate does: EUR 11 times 850 tickets.
Weekly revenue after (EUR): 11 × 850 = 9,350
Step 3: Elasticity
What a strong candidate does: Tickets fell 15 percent after a 10 percent price rise.
Price elasticity: -15 ÷ 10 = -1.5
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
No, the cinema should not keep the EUR 11 price on revenue grounds, because weekly revenue fell from EUR 10,000 to EUR 9,350. The reason is elastic demand: a 10 percent price rise cut tickets by 15 percent, an elasticity of about 1.5. The risk is that the loss is larger than it looks, since fewer visitors also buy fewer snacks. As a next step, compare weekly profit at both prices, including snack sales, before deciding whether to return to EUR 10.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.