Answered: Based on this information, what can you…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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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