# Chapter 1. SP_Chiang_Chapter03_003

## Introduction

Solved Problems
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You must read each slide, and complete any questions on the slide, in sequence.

### Question

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.

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_feedback_correct: : Demand elasticity measures the responsiveness of quantity to price. It is represented in terms of “percentage changes,” which is written as “%∆”. _feedback_incorrect: : Demand elasticity measures the responsiveness of quantity to price. It is represented in terms of “percentage changes,” which is written as “%∆”.

### Question

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The percentage change formula is 100% * (new value – original value) / original value. Here, we calculate %∆Q =100% * (2,212,000 - 2,541,000)/2,541,000
The percentage change formula is 100% * (new value – original value) / original value. Here, we calculate %∆Q =100% * (2,212,000 - 2,541,000)/2,541,000

### Question

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Using the percentage change formula, we calculate %∆P = 100% * (11.50-10.50)/10.50.
Using the percentage change formula, we calculate %∆P = 100% * (11.50-10.50)/10.50.

### Question

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This is equal to 12.95 divided by 9.52.
This is equal to 12.95 divided by 9.52.

### Question

We can conclude that movie-ticket demand is nh4JM365URIE2b8gnIp3MpF+8z7UoCwiraQL+ESo8stsBs5b4T1weZBwxc/ihlBvV6A5yb1JMfuJv6rtlsfdxNk0AOVo9yttPfw1ysEuRlE= because this elasticity is sAPw+nngVMpXnkmBon0YD5EspWHR/SHg6S5loi2kPl0EOokQh5X1Q597b+zxFa8oteUTI0Gnr5+HGN5I2zD5/jNoQo0=.

The value of 1.36 is greater than one, but not infinite. It is therefore elastic, but not perfectly elastic.][This text would appear once BOTH answers are selected.
The value of 1.36 is greater than one, but not infinite. It is therefore elastic, but not perfectly elastic.][This text would appear once BOTH answers are selected.