Author Question: If the price elasticity of demand for football tickets is estimated to be 4.5, then a 10 percent ... (Read 114 times)

formula1 · **on:** Jun 30, 2018

If the price elasticity of demand for football tickets is estimated to be 4.5, then a 10 percent increase in football ticket prices would be expected to cause a:
a. 4.5 percent decrease in quantity demanded.
b. 4.5 percent increase in quantity demanded.
c. 45 percent decrease in quantity demanded.
d. 45 percent increase in quantity demanded.
e. 450 percent increase in quantity demanded

Question 2

As price decreases and we move down further along a linear demand curve, the price elasticity of demand will:
a. decrease.
b. increase.
c. stay the same.
d. approach infinity.
e. increase or decrease.