Suppose the price of drama seen at a theatre rises from ₹ 120 per person to ₹ 200 per person. The theatre manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons. What is the price elasticity of demand for movies?
A. 0.5
B. 0.8
C. 1.0
D. 1.2
Answer:B
Suppose the price of drama seen at a theatre rises from ₹ 120 per person to ₹ 200 per person. The theatre manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons. What is the price elasticity of demand for movies?
A. 0.5 B. 0.8 C. 1.0 D. 1.2