Demand for tickets is given by D(p) = 200,000 - 10,000p, where p is the price of tickets. If the price of tickets is $8, then the price elasticity of demand for tickets is

The answer should be -0.67, but I am having trouble solving for it

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Darryn D'SouzaLv10

28 Sep 2019

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1-Economists recently found that a lot of increase in the price of beer caused the quantity demanded of wine to increase by 4%. This means that the cross-price elasticity of demand between beer and wine is.
a. 0.4, and beer and wine are substitutes
b. 2.5, and beer and wine are complements
c. 0.4, and beer and wine are complements
d. 2.5, and beer and wine are substitutes.

2. A I0% increase in the price of a movie ticket in Westridge 8 leads to an l5Yo decrease in the number of tickets sold, indicating the demand for movie tickets in Westridge 8 is:
a. elastic.
b. inelastic.
c. unit elastic.
d. Can not tell from the information given.

3. If economists estimate that the price elasticity of the supply of physician services is 0.2 then the supply of physician services is_ anda25o/o decrease in the price of physician services will result in the quantity supplied of physician services.
g. inelastic; 5olo decrease
h. inelastic; 5olo increase
i. inelastic;25Yo decrease
j. inelastic; 25olo increase
k. inelastic; 500/o decrease
l. inelastic; 500/o increase

4. A 5% decrease in the price of country music concert tickets causes a 15o/o increase in the demand for beer then the cross-price elasticity of demand between country music concert tickets and beers
a. -3.0 and tickets and beer are complements
b. -0.3 and tickets and beer are complements
c. -3.0 and tickets and beer are substitutes
d. -0.3 and tickets and beer are substitutes

5. An economist for the jeans industry has estimated the price elasticity of demand for blue jeans at -2.9. Based on this estimate 5o/o decrease in the price of jeans would result in a
a. 145% decrease in the quantity demanded of jeans
b. 14.5% increase in the quantity demanded of jeans
c. 2.9%o decrease in the quantity demanded of jeans
d. 2.9Yo increase in the quantity demanded of jeans

periwinkleduck471

The Grand Theater is a movie house in a medium-sized college town. This theater shows unusual

films and treats early-arriving movie goers to live organ music and Bugs Bunny cartoons. If the

theater is open, the owners have to pay a fixed nightly amount of $500 for films, ushers, and

so on, regardless of how many people come to the movie. For simplicity, assume that if the

theater is closed, its costs are zero. The nightly demand for Grand Theater movies by students

is QS = 220%u221240PS, where QS is the number of movie tickets demanded by students at price PS.

The nightly demand for nonstudent moviegoers is QN = 140%u221220PN .

(a) If the Grand Theater charges a single price, P, to everybody, then at prices between 0 and

$5.50, the aggregate demand function for movie tickets is Q(P) = . Over this range of prices,

the inverse demand function is then P(Q) = .

(b) What is the profit-maximizing number of tickets for the Grand Theater to sell if it charges

one price to everybody? . At what price would this number of tickets be sold? . How much

profits would the Grand make? . How many tickets would be sold to students? . To

nonstudents? .

door by making students show their school ID cards. Students cannot resell their tickets and

nonstudents do not have access to student ID cards. Then the Grand can increase its profits by

charging students and nonstudents different prices. What price will be charged to students? .

How many student tickets will be sold? . What price will be charged to nonstudents? . How

many nonstudent tickets will be sold? . How much profit will the Grand Theater make?

a. If a 10 percent increase in price decreases the quantity demanded by 12 percent, the price elasticity of demand is ____________.

b. The price of strawberries falls from $1.50 to $1.00 per carton and the quantity demanded goes from 100,000 to 200,000 cartons. Calculate the price elasticity of demand and interpret it in words.

c. At the present level of consumption, 4,000 movie tickets, and at the current price, $5 per ticket, the price elasticity of demand for movie tickets is 1. Calculate the percentage by which the owners of movie theaters must reduce the price in order to sell 5,000 tickets.

d. The price elasticity of demand for ice-cream sandwiches is 1.2 at the current price of $0.50 per sandwich and the current consumption level of 100,000 sandwiches. Calculate the change in the quantity demanded when the price rises by $0.05.

e. Calculate the price elasticity of supply for web-design services when the price per hour rises from $100 to $150 and the number of hours transacted increases from 300,000 to 500,000. Is supply elastic, inelastic, or unit elastic?