Question

price for chicken wings increased by 10% and the demand for corn beef increased from 40 units to 50 calculate the x .E.D​

Answer 1

Answer:

cinema charges £8 per ticket for evening screenings and sells 250 tickets a night on average. They estimate that the price elasticity of demand for tickets is (-) 1.6.

Calculate the expected number of tickets sold if they reduce the ticket price to £7.

Answer:

Ped = % change in Qty Demanded / % change in Price

% change in price = 12.5%

If Ped = (-) 1.6 then ticket sales will rise by 1.6 x 12.5% = 20%

20% of 250 is 50 extra tickets

Expected tickets sold