When the price of NBA ticket is $25 each,30,000 tickets are sold every game.After the price rises to $30 each,20,000 tickets are sold every game.At the original price,the demand for NBA ticket is:
A)elastic.
B)inelastic.
C)unitary elastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

The percentage change in quantity is 0.333 (10,000/30,000)and the percentage change in price is 0.2 ($5/$25).If the percentage change in quantity is greater than the percentage change in price,then the elasticity will be greater than one.When elasticity is greater than one,demand is price elastic.

When the Price of NBA Ticket Is $25 Each,30,000 Tickets