The demand for tickets to an ethiopian camparada film is given by D(p)=200,000-10,000p, where p is the price of tickets. If the price of tickets is 12 birr, calculate price elasticity of demand for tickets and draw the demand curve.
Answers
Ethiopian Camparada film
Explanation:
Given :
D(p)=200,000-10,000 p
Change in demand/change in price = -10,000
At price 12 Birr change demand units will be
D(p)= 200,000- 10,000 12
= 80,000 units
Elasticity in demand= Change in demand/ Change in price unit
= -10,000
Given :
D(p)=200,000-10,000 p
Change in demand/change in price = -10,000
At price 12 Birr change demand units will be
D(p)= 200,000- 10,000 12
= 80,000 units
Elasticity in demand= Change in demand/ Change in price unit
=
= -1.5(approximately)
Therefore price elasticity of demand is -1.5
Price elasticity is a measure that refers to change in the % of quantity demanded due to % change in price.
As the price elasticity is negative it implies that as the price of the ticket increases demand will keep on falling.
= -1.5(approximately)
Therefore price elasticity of demand is -1.5
Price elasticity is a measure that refers to change in the % of quantity demanded due to % change in price.
As the price elasticity is negative it implies that as the price of the ticket increases demand will keep on falling.
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