Question

If you compute the price elasticity of demand using a quantity of tickets from 1 to 8 and using a quantity of tickets from 1,000 to 8,000, the value of the price elasticity of demand is a.equal to one in both cases. b.larger when values from 1.000 to 8.000 are used because these values are larger than units 1 to 8. c.the same because the percentage change in quantity demanded will remain the same. d.smaller when values from 1,000 to 8,000 are used because these values are larger than units 1 to 8.

Answer 1

Answer:

c.the same because the percentage change in quantity demanded will remain the same.

Explanation:

If you compute the price elasticity of demand using a quantity of tickets from 1 to 8 and using a quantity of tickets from 1,000 to 8,000, the value of the price elasticity of demand is the same because the percentage change in quantity demanded will remain the same.

The price elasticity of demand is measured by the formula 'the percentage change in quantity demanded in response to a one percent change in price.'

Therefore,  price elasticity will not because: 1000/2000 units will give the same % change as 1/2.