Exhibit 5-4 Demand curves for silver

-If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is:
A) price elastic.
B) price inelastic.
C) perfectly inelastic.
D) unitary elastic.

Question

Exhibit 5-4 Demand curves for silver
​ 
-If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is:
A) price elastic. 
B) price inelastic. 
C) perfectly inelastic. 
D) unitary elastic.

Quizplus · Accepted Answer

A decrease in quantity demanded greater than the increase in price indicates a price elasticity greater than 1, which is considered price elastic.

Exhibit 5-4 Demand Curves for Silver