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

Price elasticity of demand — practice question

A sports stadium charges for two categories of seats. The lower-priced seats cost $10, while the higher-priced seats cost $20. If every seat price rises by 10%, demand changes by falling 5% for the lower-priced seats and falling 12% for the higher-priced seats. What term describes how demand responds to the price change?

  • Aelastic / elastic
  • Belastic / inelastic
  • Cinelastic / elastic
  • Dinelastic / unitary elasticity

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