The Price Elasticity of Demand for a Popular Sporting Event

question 349

Multiple Choice

The price elasticity of demand for a popular sporting event is 0.5. If the price of a ticket to this event increases by 12 percent, the quantity of tickets demanded will

• A)decrease by 24 percent.
• B)decrease by 6 percent.
• C)increase by 6 percent.
• D)increase by 24 percent.

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Definitions:

Quotas

Restrictions imposed by a government on the quantity of a good that can be imported or exported during a specific period.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or raise revenue.

International Trade

The exchange of goods, services, and capital between countries and territories.

Economically Advanced

Describes countries or regions with high levels of income, sophisticated infrastructure, and a diverse economy, often synonymous with developed countries.