The price of a Boston Red Sox baseball game rises from $10 to $12 a game....

Question

Question

Answer 1

Answer #1

Answer :

Price elasticity of demand = % change on demand /% change in price

% change in demand =(144000-160000)/160000=-10%

% change in price =(12-10)/10=20%

Price elasticity of demand =-10%/20%=-0.5

Since price elasticity is less than 1 so it is relatively inelastic demand.

Answer 2

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