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.?© BrainMass Inc. brainmass.com March 21, 2019, 4:55 pm ad1c9bdddf
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 ...
Help is given about how to interpret elasticity of demand.