Movie attendance dropped 8 percent as tick prices rose a little more than 5 percent. What is the price elasticity of demand for movie tickets? Could price elasticity be some-what overestimated from these figures? That is, could other things have changed, accounting for some of the decline in attendance?

To calculate the price elasticity of demand for movie tickets, we need to use the formula:

Elasticity of demand = percentage change in quantity demanded / percentage change in price

In this case, the percentage change in quantity demanded is an 8 percent drop in movie attendance, and the percentage change in price is a little more than a 5 percent increase in ticket prices.

Elasticity of demand = (-8%) / (5%)
= -1.6

Therefore, the price elasticity of demand for movie tickets is -1.6.

Now, let's address the second part of your question. It is possible that other factors, besides price, may have contributed to the decline in movie attendance. These factors could include changes in consumers' preferences, availability of alternative entertainment options, changes in economic conditions, or even the quality of the movies themselves.

Price elasticity of demand assumes that all other factors remain constant, which is often not the case in the real world. So, it is important to consider that the calculated price elasticity of demand may somewhat overestimate the actual responsiveness of attendance to the price change.

To get a more accurate understanding of the price elasticity of demand, it is advisable to conduct more comprehensive studies that control for other factors and account for various influences on movie attendance.