Question

It has been estimated that the price elasticity of demand for attending Atlanta Braves baseball games is -0.57. If price were the only factor to change, one might conclude that a decrease in the attendance of 11.4% was caused byA. an increase in ticket prices of 2%B. a decrease in ticket prices of 20%C. an increase in ticket prices of 20%D. a decrease in ticket prices of 2%

Answer 1

The correct answer is option C.

Step-by-step explanation:

The price elasticity of demand for attending Atlanta Braves baseball games is -0.57.

There was a decrease in demand by 11.4%.

This may have been caused by the increase in price.

Price elasticity of demand =
`(\% \Delta Q)/(\% \Delta P)`

-0.57 =
`(-11.4 \%)/(\% \Delta P)`

ΔP = 20 %

So there is a price increase of 20%.