Answer to Question #62010 in Microeconomics for Benjamin Logan

Question #62010
1. The Brisbane Entertainment Centre is a performance venue, which hosts popular musicians from around the world. It has a maximum seating capacity of 13,500 people. In 2015, an artist priced their performance at a price of $50 per ticket and the show was completely sold out. The next year the same performer decided to increase the price to $100 per ticket but this time only 12,000 tickets were sold. 1. The point elasticity of demand at a price of $50 is 0.07% (rounded to two decimal places). 2. A 1% increase in the price of a ticket leads to a 0.11% (rounded to two decimal places) decrease in quantity demanded. 3. A 1% increase in price leads to a 0.07% (rounded to two decimal places) increase in quantity demanded. Which of the above statements are true: Only 1 is true. Only 2 is true. Both 1 and 2 are true. Both 2 and 3 are true. All three are true.
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Expert's answer
2016-09-14T12:36:04-0400
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