Suppose the Price of a Ticket to a Rolling Stones

question 77

Multiple Choice

Suppose the price of a ticket to a Rolling Stones concert is $41 and, at that price, the quantity of tickets demanded is 17,000 per concert. Using the midpoint method of calculating percentage changes, if the Rolling Stones raises the price to $48 and the quantity demanded decreases to 16,000, the price elasticity of demand for their concert tickets is

• A) 6.06.
• B) 0.93.
• C) 1.00.
• D) 0.39.
• E) 15.73.

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Definitions:

Overconfident

Characterized by an overly strong belief in one's abilities or outcomes, often more than is warranted by the reality.

Mathematical Skills

Abilities related to understanding, analyzing, and working with numbers and mathematical concepts.

Self-Serving Bias

The common tendency to attribute successes to personal characteristics and failures to external factors.

Exaggerated Feelings

Intense emotional responses that are disproportionate to the situation at hand.