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Economics

Suppose you are the manager of the only theatre in town that plays Shakespeare. You found that the quantity demanded for your tickets decreases from 160 to 150 when the ticket price increases from $44 to $49.

(a) What is the price elasticity of demand for your tickets? Show your calculation, using the midpoint method.

(b) Explain the meaning of the elasticity calculated in (a) above.

(d) Would the elasticity calculated in (a) above apply to everyone in town? Why or why not?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91950514

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