Disney just raised its 3 day 3 park pass from $110.00 to $121.00. Sales fell from 4,000 per week to 3,000 per week. Calculate the price elasticity of demand using the arc elasticity of demand formula. Is demand elastic or inelastic? Why?

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
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Problem 12CQ: Jills Sausage Dog Stand projects the following demand for Jills sausage dogs: a. Calculate the price...
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Disney just raised its 3 day 3 park pass from $110.00 to $121.00.

Sales fell from 4,000 per week to 3,000 per week.

  1. Calculate the price elasticity of demand using the arc elasticity of demand formula.
  2. Is demand elastic or inelastic? Why?
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