Suppose the Adelaide Crows Football Team Raises Ticket Prices by 13

question 118

Multiple Choice

Suppose the Adelaide Crows football team raises ticket prices by 13 per cent and as a result the quantity of tickets demanded decreases by 21 per cent. This response means that the demand for Crows tickets is

• A) inelastic.
• B) elastic.
• C) perfectly inelastic.
• D) unit elastic.
• E) perfectly elastic.

---

Definitions:

Equivalent Effective Rate

A comparable interest rate that equates the interest earned on different investments or loans over the same time period, taking into account the effects of compounding.

Face Value

The original value of a financial instrument as stated on the instrument itself, without accounting for interest or market value fluctuations.

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Compounded Monthly

An approach to interest calculation conducted every month, including both the initially loaned or deposited sum and the cumulatively gained interest from former periods.