Answered: Based on this information, what can you…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 13E

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Assume you have 4 tickets to an 8pm Taylor Swift concert at Lincoln Financial Field. As you approach the gate, you learn your hot water heater broke and you need to return to your house right away. On your way back to your car, you see four people wearing Taylor Swift tee shirts in the parking lot and you offer them your tickets for $100 per ticket. These people look at their watches, see that it is 7:45, and then tell you they will pay you $40 per seat and not a nickel more. Based on this information, what can you conclude about the price elasticity of demand for those specific four tickets? What would this demand curve look like?

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