{"id":235697,"date":"2025-06-15T15:26:48","date_gmt":"2025-06-15T15:26:48","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=235697"},"modified":"2025-06-15T15:26:51","modified_gmt":"2025-06-15T15:26:51","slug":"suppose-the-price-of-a-ticket-to-a-billie-eilish-concert-is","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/06\/15\/suppose-the-price-of-a-ticket-to-a-billie-eilish-concert-is\/","title":{"rendered":"Suppose the price of a ticket to a Billie Eilish concert is"},"content":{"rendered":"\n<p>Suppose the price of a ticket to a Billie Eilish concert is<br>69 and the quantity demanded decreased to 9,300, what is the price elasticity of demand for a Billie Eilish concert ticket<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-1-color\">The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Correct Answer:<\/strong><\/p>\n\n\n\n<p>To calculate the price elasticity of demand (PED), the following formula is used:Price&nbsp;Elasticity&nbsp;of&nbsp;Demand&nbsp;(PED)=%&nbsp;change&nbsp;in&nbsp;quantity&nbsp;demanded%&nbsp;change&nbsp;in&nbsp;price\\text{Price Elasticity of Demand (PED)} = \\frac{\\%\\ \\text{change in quantity demanded}}{\\%\\ \\text{change in price}}Price&nbsp;Elasticity&nbsp;of&nbsp;Demand&nbsp;(PED)=%&nbsp;change&nbsp;in&nbsp;price%&nbsp;change&nbsp;in&nbsp;quantity&nbsp;demanded\u200b<\/p>\n\n\n\n<p>However, the problem only provides a new price and new quantity demanded without the original values. Therefore, one of the following must be true:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The original price or quantity demanded is missing<\/li>\n\n\n\n<li>More information is needed to compute elasticity accurately<\/li>\n<\/ul>\n\n\n\n<p><strong>Assuming a hypothetical scenario:<\/strong><\/p>\n\n\n\n<p>Suppose the original price was <strong>$60<\/strong> and the original quantity demanded was <strong>10,000<\/strong> tickets. The new price is <strong>$69<\/strong>, and the new quantity demanded is <strong>9,300<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Calculate the percentage change in quantity demanded<\/h3>\n\n\n\n<p>%&nbsp;change&nbsp;in&nbsp;quantity=9300\u22121000010000\u00d7100=\u221270010000\u00d7100=\u22127%\\%\\ \\text{change in quantity} = \\frac{9300 &#8211; 10000}{10000} \\times 100 = \\frac{-700}{10000} \\times 100 = -7\\%%&nbsp;change&nbsp;in&nbsp;quantity=100009300\u221210000\u200b\u00d7100=10000\u2212700\u200b\u00d7100=\u22127%<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Calculate the percentage change in price<\/h3>\n\n\n\n<p>%&nbsp;change&nbsp;in&nbsp;price=69\u22126060\u00d7100=960\u00d7100=15%\\%\\ \\text{change in price} = \\frac{69 &#8211; 60}{60} \\times 100 = \\frac{9}{60} \\times 100 = 15\\%%&nbsp;change&nbsp;in&nbsp;price=6069\u221260\u200b\u00d7100=609\u200b\u00d7100=15%<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Calculate PED<\/h3>\n\n\n\n<p>PED=\u22127%15%=\u22120.47\\text{PED} = \\frac{-7\\%}{15\\%} = -0.47PED=15%\u22127%\u200b=\u22120.47<\/p>\n\n\n\n<p><strong>Result: -0.47 (usually expressed as 0.47 in absolute value)<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Explanation:<\/strong><\/p>\n\n\n\n<p>The price elasticity of demand measures how responsive the quantity demanded of a good is to a change in its price. A PED value of 0.47 indicates that the demand is <strong>inelastic<\/strong>, meaning the quantity demanded changes less proportionally than the price does. This often occurs for goods that are considered necessities, have few substitutes, or are tied to strong consumer preferences\u2014such as tickets to a favorite artist\u2019s concert.<\/p>\n\n\n\n<p>When demand is inelastic, raising the price leads to a relatively small drop in quantity demanded, potentially increasing total revenue. Conversely, lowering the price would not boost sales enough to compensate for the lower price, possibly decreasing total revenue.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/06\/learnexams-banner8-634.jpeg\" alt=\"\" class=\"wp-image-235698\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Suppose the price of a ticket to a Billie Eilish concert is69 and the quantity demanded decreased to 9,300, what is the price elasticity of demand for a Billie Eilish concert ticket The Correct Answer and Explanation is: Correct Answer: To calculate the price elasticity of demand (PED), the following formula is used:Price&nbsp;Elasticity&nbsp;of&nbsp;Demand&nbsp;(PED)=%&nbsp;change&nbsp;in&nbsp;quantity&nbsp;demanded%&nbsp;change&nbsp;in&nbsp;price\\text{Price Elasticity of [&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 center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-235697","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/235697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=235697"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/235697\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=235697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=235697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=235697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}