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It has been estimated that the price elasticity of demand for attending Atlanta Braves baseball games is -0.57. If price were the only factor to change, one might conclude that a decrease in the attendance of 11.4% was caused byA. an increase in ticket prices of 2%B. a decrease in ticket prices of 20%C. an increase in ticket prices of 20%D. a decrease in ticket prices of 2%

Respuesta :

Answer:

The correct answer is option C.

Explanation:

The price elasticity of demand for attending Atlanta Braves baseball games is -0.57.

There was a decrease in demand by 11.4%.

This may have been caused by the increase in price.

Price elasticity of demand = [tex]\frac{\% \Delta Q}{\% \Delta P}[/tex]

-0.57 = [tex]\frac{-11.4 \%}{\% \Delta P}[/tex]

ΔP = 20 %

So there is a price increase of 20%.