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how to interpret elasticity of demand

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What would a 10% increase in the price of movie tickets mean for the revenue of a theater if the price elasticity of dmenad was.1, .5, 1., and 5.?

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Before answering the actual question posted, let us have a look over the following to have the idea how to interpret elasticity of demand for different values of ep.

The value of Price Elasticity of Demand ep varies between zero and infinity, i.e.
0 ≤ ep ≤ ∞ , when :

(i) ep = 0 (absolutely inelastic demand), means a ...

Solution Summary

Help is given about how to interpret elasticity of demand.

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