. Suppose a ticket to a Rolling Stones concert is $400 and at that price, the quantity of tickets demanded is 47,000 per concert. Using the midpoint method of calculating percentage changes, if the ticket price increases to $500 and the quantity demanded decreases to 46,000, what is the price elasticity of demand for Rolling Stones concert tickets? Referring to the above, which is greater -- the % change in quantity demanded or the % change in price? What will happen to total revenue (TR) when the price increases to $500? Briefly explain.

The price elasticity of demand is the ratio of two variables namely percentage change in quantity…

Answered: Suppose a ticket to a Rolling Stones…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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. Suppose a ticket to a Rolling Stones concert is $400 and at that price, the quantity of tickets demanded is 47,000 per concert.

Using the midpoint method of calculating percentage changes, if the ticket price increases to $500 and the quantity demanded decreases to 46,000, what is the price elasticity of demand for Rolling Stones concert tickets?

Referring to the above, which is greater -- the % change in quantity demanded or the % change in price?

What will happen to total revenue (TR) when the price increases to $500? Briefly explain.

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