Answer to Question #62010 in Microeconomics for Benjamin Logan

Question

1. The Brisbane Entertainment Centre is a performance venue, which hosts popular musicians from around the world. It has a maximum seating capacity of 13,500 people. In 2015, an artist priced their performance at a price of $50 per ticket and the show was completely sold out. The next year the same performer decided to increase the price to $100 per ticket but this time only 12,000 tickets were sold.
1. The point elasticity of demand at a price of $50 is 0.07% (rounded to two decimal places).
2. A 1% increase in the price of a ticket leads to a 0.11% (rounded to two decimal places) decrease in quantity demanded.
3. A 1% increase in price leads to a 0.07% (rounded to two decimal places) increase in quantity demanded.
Which of the above statements are true:

Only 1 is true.

Only 2 is true.

Both 1 and 2 are true.

Both 2 and 3 are true.

All three are true.