Answer to Question #164115 in Macroeconomics for gigi

Question

2, See the following scenario and say it is perfectly inelastic, elastic or

inelastic. Draw the diagram and write values(o, 1, <1 or >1)

A. There is a huge jump in the ticket price of a cricket match . However Sumner

of seats in the gallery is fixed. (4 MARKS)

B. Fewer people want to fly in the month of June than any other month. The

airlines increase about 10% of their flights , as ticket prices increased about 20%

during this month. (4 MARKS)

Answer 1

A. perfectly inelastic

B. elastic

1)totally inelastic demand

2)elastic demand