单选题 If the admission price for a rock concert is raised from $ 25 to $ 30 causing sales to drop from 60000 to 40000, the price elasticity of demand for tickets to the concert is:

A、

A. -2.20.
B、

B. -1.67.
C、

C. 0.60.

【正确答案】 A

【答案解析】Price elasticity of demand is calculated by dividing the percent change in quantity demanded by the percent change in price, using the average value of the variable in the computations. The percent change in quantity demanded is (40000-60000)/((60000+ 40000)/2)=-0.4. The percent change in price is (30-25)/((30+25)/2)=0.1818. The price elasticity of demand is -0.40/0.1818=-2.2.