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Author Question: If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 ... (Read 31 times)

roselinechinyere27m

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on: Jun 30, 2018
If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is:
 a. price elastic.
  b. price inelastic.
  c. perfectly inelastic.
  d. unitary elastic.

Question 2

Governments can use price elasticity of demand to estimate how changes in excise tax rates will affect:
 a. income.
  b. prices.
  c. tax revenues.
  d. government spending.
  e. profits.


IRincones

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

c


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