Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

A theatre raises the price of its tickets from $10 to $15. As a result, its total receipts fall from $10 000 to $6000. Within what range does the price elasticity of demand for theatre tickets lie?

A0.2 to 0.5
B0.6 to 1.0
C1.1 to 1.4
D1.5 to 2.0

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