# Given below are the annual demand for movie tickets for youngadults with differing annual income:a) Calculate the price elasticity of demand for both income when price increasesfrom \$8 to \$10.b) Calculate the income elasticity of demand if the person earning \$20,000annually has an increase in income to \$24,000 for price \$12 and price \$16.3Price(\$)Quantity demanded(income \$20,000)Quantity demanded(income \$24,000)8 40 5010 32 4512 24 3014 16 2016 8 12

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Given below are the annual demand for movie tickets for young
a) Calculate the price elasticity of demand for both income when price increases
from \$8 to \$10.
b) Calculate the income elasticity of demand if the person earning \$20,000
annually has an increase in income to \$24,000 for price \$12 and price \$16.
3
Price
(\$)
Quantity demanded
(income \$20,000)
Quantity demanded
(income \$24,000)
8 40 50
10 32 45
12 24 30
14 16 20
16 8 12

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Step 1

considering the given table as data, we can find the price elasticity at income A as well as B by using the provided formula. also the formula for income elaticity is given as help_outlineImage Transcriptioncloseqty dd at 20000 income qty dd at 24000 income price В 40 8 50 10 32 45 12 24 30 16 20 14 12 16 8 Дя р Др а Да Income elasticity -Aincome income Price elasticity A fullscreen
Step 2

A)then using the above formula, we have

... help_outlineImage Transcriptionclose32-40 8 Price elasticity (when income is 20000) = 10-8 40 -8 8 2 40 -0.8 45-50 8 Price elasticity (when income is 24000) 10-8 50 -5 8 2 50 -0.4 fullscreen

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