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Homework answers / question archive / Given below are the annual demand for movie tickets for young adults with differing annual income
Given below are the annual demand for movie tickets for young adults with differing annual income.
| Price ($) | Quantity Demanded ($20,000 income) | Quantity Demanded ($24,000) |
|---|---|---|
| 8 | 40 | 50 |
| 10 | 32 | 45 |
| 12 | 24 | 30 |
| 14 | 16 | 20 |
| 16 | 8 | 12 |
A. Calculate the price elasticity of demand for both income when price increases from $8 to $10.
B. Calculate the income elasticity of demand if the person earning $20,000 annually has an increase in income to $24,000 for a price of $12 and a price of $16.
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