单选题
If the admission price for a rock concert is raised from $25 to $30,
causing ticket sales to drop from 60000 to 40000, the price elasticity of demand
for tickets is:
A. -0.25.
B. -0.50.
C. -2.20.
【正确答案】
C
【答案解析】Price elasticity = (percentage change in quantity)/( percentage change in price).
Use average value in calculating the percentage change in quantity and price.
(-20/50)/(5/27.50)=-0.4/0.1818=-2.20