Asked by Johnna-Bryante Rayphen on Jun 28, 2024
Verified
The price of season tickets to a performing arts theater decreases by 4 percent. As a result, the quantity demanded increases by 6 percent. The price elasticity of demand for season tickets is
A) 0.67.
B) 6.7.
C) 1.5.
D) 0.15.
Price Elasticity of Demand
A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high responsiveness.
Performing Arts Theater
A venue dedicated to hosting live performances, such as plays, musicals, and concerts, by artists and performers.
- Execute the midpoint formula for the calculation of price elasticity concerning demand.
Verified Answer
SA
shahrzad ahrariJul 01, 2024
Final Answer :
C
Explanation :
The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is (6% / 4%) = 1.5.
Learning Objectives
- Execute the midpoint formula for the calculation of price elasticity concerning demand.