Posted by **tania** on Sunday, March 10, 2013 at 12:59pm.

1. If average movie attendance is 250 million when prices are $7 a ticket and 200 million when prices are $9 a ticket, the elasticity of demand for movie tickets is about:

A. 0.0.

B. 0.9.

C. 1.1.

D. 1.8.

- economics -
**bobpursley**, Sunday, March 10, 2013 at 1:46pm
elasticity demand= dq/Q / dp/P

= ( old-new)/old / (oldp-newP)/old

= (250-200)/250 / (7-9)/7

= 50*7/250*2=350/500=.7

Somehow, I suspect the write of this question did this:

elasticity=(0ld-new)/NEW /(oldP-newP)/OLD

and got this: 50/200 / 2/9=350/400= .875 or answer B.

check with your instructor on this.

- economics -
**tania**, Sunday, March 10, 2013 at 4:46pm
yes

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