When the price of a movie ticket falls from $ 14 to $ 10, the quantity of tickets demanded increases from 500 to 700 a day. What the price elasticity od demand for movie tickets?
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Answer:
1.42
Explanation:
price elasticity is calculated by the formula, %change in quantity/ %change in price
%change in quantity=200/500*100=40%
%change in price=4/14*100=28.57%
price elasticity= 40/28.57=1.42
the price elasticity can be described to be elastic., because it's value is greater than 1.
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Answer:
my method is same of the above answer and the above answer is fully correct so I haven't done this again.
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