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

Price elasticity of demand — practice question

A theatre raises the price of its tickets from $5 to $10. As a consequence, its total revenue rises from $2500 to $4000. Between which values does the price elasticity of demand for theatre tickets lie?

  • A0.2 to 0.5
  • B0.6 to 0.75
  • C0.8 to 1.0
  • D1.2 to 2.5

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