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15 May, 20:03

The price of stadium seats at a baseball game increases from $20 to $30 and ticket sales fall from 45,000 per game to 35,000 per game. If other things remained constant, then it appears that the price elasticity of demand is:

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  1. 15 May, 22:53
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    Inelastic

    Explanation:

    Price Elasticity of demand is the a measure which is used to show the responsiveness of the quantity to its price.

    Price Elasticity of demand = Change in quantity / Change in price

    % Change in quantity = (45,000 - 35,000) / 45,000 = 22.22%

    % Change in price = (20 - 30) / 20 = - 50%

    Price Elasticity of demand = Change in quantity / Change in price

    Price Elasticity of demand = 22.22% / - 50% = - 0.4444

    As the answer is less than 1 so, demand is Inelastic.
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Home » Business » The price of stadium seats at a baseball game increases from $20 to $30 and ticket sales fall from 45,000 per game to 35,000 per game. If other things remained constant, then it appears that the price elasticity of demand is:
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