Question

The demand for tickets to an ethiopian camparada film is given by D (p) =20000-10000 p,where is the price of tickets is 12 bir calculate elasticity of demand for tickets and draw the demand curve

Answer 1

$Q = 20,000 - 1,000×12 = 8,000$units.

The elasticity of demand for tickets is:

$Ed = -10,000×12/8,000 = -15.$

So, the demand is elastic.