Lección de elasticidad

At the box office in Spain;

“We are in a state of panic.” The reaction of the president of the Spanish film producers association (FAPAE), Pedro Pérez, to the estimate of last weekend’s takings at the Spanish box office, could not have been blunter.

“It has decreased more than 30 percent compared with the worst figure in history; we have gone down to receipts of 2,150,857 euros,” Pérez said, after speaking at the Madrid de Cine-Spanish Film Screenings event in the capital this week.

Not enough Paz Vega films?  Or, maybe it's not supply, but demand;

“We have to fight back with aggressive pricing policies,” said Pérez. “If people aren’t going into theaters at the moment because they think the cinema is expensive, it doesn’t matter what we think: we have to act accordingly.”

Pérez said he recognized the impact of the 13-point hike in the VAT rate, from eight to 21 percent, but stressed that his decision to lower prices was essential.

A near tripling of the tax rate, and fewer people buy. Imagine that.