{"id":203729,"date":"2025-03-20T14:29:42","date_gmt":"2025-03-20T14:29:42","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=203729"},"modified":"2025-03-20T14:29:44","modified_gmt":"2025-03-20T14:29:44","slug":"the-demand-for-tickets-to-an-ethiopian-camparada-film-is-given-by-dp-200000-10000p","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/03\/20\/the-demand-for-tickets-to-an-ethiopian-camparada-film-is-given-by-dp-200000-10000p\/","title":{"rendered":"The demand for tickets to an Ethiopian Camparada film is given by D(p)= 200,000-10,000p"},"content":{"rendered":"\n<p>The demand for tickets to an Ethiopian Camparada film is given by D(p)= 200,000-10,000p, where p is the price of tickets.If the price of tickets is 12 birr, calculate price elasticity of demand for tickets and draw the demand curve<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Solution: Calculating Price Elasticity of Demand<\/strong><\/h3>\n\n\n\n<p>The price elasticity of demand (PED) is given by the formula:<\/p>\n\n\n\n<p>[<br>E_d = \\frac{dD}{dp} \\times \\frac{p}{D}<br>]<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 1: Compute ( dD\/dp )<\/strong><\/h4>\n\n\n\n<p>Given the demand function:<\/p>\n\n\n\n<p>[<br>D(p) = 200,000 &#8211; 10,000p<br>]<\/p>\n\n\n\n<p>Differentiate with respect to ( p ):<\/p>\n\n\n\n<p>[<br>\\frac{dD}{dp} = -10,000<br>]<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 2: Compute Demand at ( p = 12 )<\/strong><\/h4>\n\n\n\n<p>Substituting ( p = 12 ):<\/p>\n\n\n\n<p>[<br>D(12) = 200,000 &#8211; 10,000(12) = 200,000 &#8211; 120,000 = 80,000<br>]<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 3: Compute PED<\/strong><\/h4>\n\n\n\n<p>Now, apply the values to the elasticity formula:<\/p>\n\n\n\n<p>[<br>E_d = (-10,000) \\times \\frac{12}{80,000}<br>]<\/p>\n\n\n\n<p>[<br>E_d = -1.5<br>]<\/p>\n\n\n\n<p>Since elasticity is negative (due to the law of demand), we take the absolute value:<\/p>\n\n\n\n<p>[<br>|E_d| = 1.5<br>]<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Interpretation of Elasticity<\/strong><\/h3>\n\n\n\n<p>The price elasticity of demand for Ethiopian Camparada film tickets is <strong>1.5<\/strong>, which means demand is <strong>elastic<\/strong>. A <strong>1% increase in price<\/strong> leads to a <strong>1.5% decrease in demand<\/strong>. Since ( |E_d| &gt; 1 ), revenue will decrease if the price increases.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Graphing the Demand Curve<\/strong><\/h3>\n\n\n\n<p>The demand function is:<\/p>\n\n\n\n<p>[<br>D(p) = 200,000 &#8211; 10,000p<br>]<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When ( p = 0 ), ( D = 200,000 ) (Y-intercept).<\/li>\n\n\n\n<li>When ( D = 0 ), solving ( 200,000 &#8211; 10,000p = 0 ): [<br>p = 20<br>] (X-intercept at ( p = 20 )).<\/li>\n<\/ul>\n\n\n\n<p>The demand curve is a downward-sloping straight line from ( (0, 200,000) ) to ( (20, 0) ).<\/p>\n\n\n\n<p>Would you like me to generate the demand curve graph?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The demand for tickets to an Ethiopian Camparada film is given by D(p)= 200,000-10,000p, where p is the price of tickets.If the price of tickets is 12 birr, calculate price elasticity of demand for tickets and draw the demand curve The correct answer and explanation is : Solution: Calculating Price Elasticity of Demand The price [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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