Let Ed_t= -2. This implies that the demand for movie tickets is A) Inelastic, because a 1% change in P_tchanges Qd_t by 2 units B) Inelastic, because a 1% change in P_tchanges Qd_t by 1% C) Elastic, because a 1% change in P_tchanges Qd_t by 1% D) Elastic, because a 1% change in P_tchanges Qd_t by 2%

Question

Quizplus · Accepted Answer

The demand elasticity of -2 indicates that a 1% change in price results in a 2% change in quantity demanded, making the demand elastic.

Let Edt = -2

Let Ed_t= -2