ZuoTi.Pro
Question

A minor league baseball team raised the average price of its tickets from S8 to $8.TO and found that average attendance at its games dropped from 5,200 to 4,800. Using the arc elasticity of demand formula, the price elasticity of demand for tickets is(Express your answer as a real number rounded to two decimal places. Dont forget the negative sign)

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Ans: -0.95

Explanation:

Here, P1 = 8, Q1 = 5200,

P2 = 8.70, Q2 = 4800

PED = (Q2 - Q1) / (P2 - P1) * (P1 + P2) / (Q1 + Q2)

= (4800 - 5200) / (8.70 - 8) * (8 + 8.70) / (4800 + 5200)

= (-400 / 0.70) * (16.70 / 10000)

= -6680 / 7000

= -0.95

0 0
Add a comment
Know the answer?
Add Answer to:
A minor league baseball team raised the average price of its tickets from S8 to $8.TO...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • This Question: 3 pts A minor league baseball team raised the average price of its tickets...

    This Question: 3 pts A minor league baseball team raised the average price of its tickets from S8 to $8.60 and found that average attendance at its games dropped from 5,200 to 4,800. Using the arc elasticity of demand formula, the price elasticity of demand for tickets is (Express your answer as a roal number rounded to two decimal places. Dont forget the negative sign.) The demand for tickets is therefore

  • The Sioux Valley Parakeets, a minor league baseball team, has hired you as a consultant to...

    The Sioux Valley Parakeets, a minor league baseball team, has hired you as a consultant to predict ticket sales for the upcoming season, and to advise on changes in ticket prices. The current price is $7.50. If Ep (elasticity price) is -.85, predict the percentage change in tickets if price is raised to $8.50. Will revenue rise or fall? How does your answer change if elasticity is -1.1? Provide step by step

  • Homework: Homework 1 - Chapter 2 Score: 0 ol 1 pt Concept Question 4.1 12 of...

    Homework: Homework 1 - Chapter 2 Score: 0 ol 1 pt Concept Question 4.1 12 of 15 (11 c HYy Score: 5667%, 8 5 of 15 EQuestion Help A minor league baseball team raised the average price of its tickets from $8 to $8 60 and found that average attendance at its answer as a real number rounded to two decimal places. Don forgel the negative sign) 1 part

  • ulie Porucznik is the Chief Marketing Officer for a Major League Baseball team. The team has...

    ulie Porucznik is the Chief Marketing Officer for a Major League Baseball team. The team has finished in the lower half of its division for the past five seasons. Attendance has been on the decline during this time, with an average attendance of 63% during the past season. There is an internal debate regarding ticket pricing. One group advocates keeping the prices at their current level, arguing that once the team starts discounting it is difficult to increase prices. Another...

  • A minor league baseball team called the Billings Mustangs attracts both students and non-students as fans...

    A minor league baseball team called the Billings Mustangs attracts both students and non-students as fans during the season, which runs from about mid-April through August. The Mustangs organization has estimated that, among students, weekly demand for tickets varies according to the equation Q 1200 200P, where Q is the quantity of tickets sold and P is the price in dollars. Among non-students, weekly demand is given by the equation Q 800-100P. The Mustangs organization earns marginal revenue from students...

  • Please explain in detail! Need help! A minor league baseball team called the Billings Mustangs attracts...

    Please explain in detail! Need help! A minor league baseball team called the Billings Mustangs attracts both students and non-students as fans during the season, which runs from about mid-April through August. The Mustangs organization has estimated that, among students, weekly demand for tickets varies according to the equation Q 1200 200P, where Q is the quantity of tickets sold and P is the price in dollars. Among non-students, weekly demand is given by the equation Q 800 100P. The...

  • (1 point) A baseball team plays in a stadium that holds 62000 spectators. With the ticket price at $9 the average atten...

    (1 point) A baseball team plays in a stadium that holds 62000 spectators. With the ticket price at $9 the average attendance has been 24000. When the price dropped to $6, the average attendance rose to 31000. a) Find the demand function p(x), where x is the number of the spectators. (Assume that p(x) is linear.) p(x) -7/2x^2+52x = b) How should ticket prices be set to maximize revenue? The revenue is maximized by charging$ per ticket. (1 point) A...

  • please answer all don't understand Short Answer 1. When the price of Kit Kats rises by 20 percent, Matt reduces th...

    please answer all don't understand Short Answer 1. When the price of Kit Kats rises by 20 percent, Matt reduces the amount of Kit Kats he eats from 10 to 9. Calculate the elasticity for Kit Kats. Are Kit Kats elastic or inelastic? Why? 2. If the price of chocolate increases by 20 percent and the total revenue generated from the sale of chocolate rises even though quantity does not fall, what can be said about the elasticity of chocolate...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT