Suppose that, if the price of movie tickets increases from $10.50 to $11.50, the quantity demanded decreases from 2,541,000 to 2,212,000.
Which is the correct formula for the elasticity of demand?
Suppose that the price of movie tickets increases from $10.50 to $11.50, and the quantity demanded decreases from 2,541,000 to 2,212,000. Using the base method (in which the original value appears in the denominator), if the elasticity of demand is measured as how much is %∆Q? Round the answer to two decimal places. %
Suppose that the price of movie tickets increases from $10.50 to $11.50, and the quantity demanded decreases from 2,541,000 to 2,212,000. Using the base method (in which the original value appears in the denominator), if the elasticity of demand is measured as how much is %∆P? Round the answer to two decimal places. %
If %∆Q = -12.95%, %∆P = 9.52%, and , how much is elasticity? Round the answer to two decimal places.
We can conclude that movie-ticket demand is because this elasticity is .