Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,000, 6,000, 7,000, and 8,000 movie tickets, makes no difference in determining elasticity in the table below. Total Quantity of Elasticity Coefficient Tickets Demanded per Week Price Total- Total Revenue per (Ed) Thousands Ticket Revenue Test 1 Elastic $8 5.00 $8,000 2 7 2.60 14,000 Elastic 3 1.57 18,000 Elastic Unit 4 5 1.00 20,000 elastic 20,000 5 4 0.64 Inelastic 3 0.38 18,000 Inelastic 6 7 2 0.20 14,000 Inelastic 1 0.00 8,000 Inelastic
Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,000, 6,000, 7,000, and 8,000 movie tickets, makes no difference in determining elasticity in the table below. Total Quantity of Elasticity Coefficient Tickets Demanded per Week Price Total- Total Revenue per (Ed) Thousands Ticket Revenue Test 1 Elastic $8 5.00 $8,000 2 7 2.60 14,000 Elastic 3 1.57 18,000 Elastic Unit 4 5 1.00 20,000 elastic 20,000 5 4 0.64 Inelastic 3 0.38 18,000 Inelastic 6 7 2 0.20 14,000 Inelastic 1 0.00 8,000 Inelastic
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 2E: Plot the price and quantity data given in the demand schedule of exercise 1. Put price on the...
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