2) Concert ticket prices hit new high note USA Today, July 10, 2001 www.usatoday.com It costs...

 

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2) Concert ticket prices hit new high note USA Today, July 10, 2001 www.usatoday.com It costs a lot more to see your favorite band in person, and there seems to be no end in sight to the skyrocketing ticket costs. The average ticket price during the first six months of 2001 was $46.69, a 4.2% jump from the same period last year, according to a report released Monday by the concert trade publication Pollstar. In the past four years, concert ticket prices have nearly doubled. The report suggests concertgoers have finally had enough: Ticket sales were down 15.5% this year vs. the first six months of 2000. a) What is the implied price elasticity of demand for concert tickets? b) Is this inelastic, unit elastic, or elastic? How do you interpret this finding? 2) Concert ticket prices hit new high note USA Today, July 10, 2001 www.usatoday.com It costs a lot more to see your favorite band in person, and there seems to be no end in sight to the skyrocketing ticket costs. The average ticket price during the first six months of 2001 was $46.69, a 4.2% jump from the same period last year, according to a report released Monday by the concert trade publication Pollstar. In the past four years, concert ticket prices have nearly doubled. The report suggests concertgoers have finally had enough: Ticket sales were down 15.5% this year vs. the first six months of 2000. a) What is the implied price elasticity of demand for concert tickets? b) Is this inelastic, unit elastic, or elastic? How do you interpret this finding?

Answer rating: 100% (QA)

a Based on the information provided Ticket prices increased by 42 from the same period last ... View the full answer