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This Question: 3 pts A minor league baseball team raised the average price of its tickets from S8 to $8.60 and found that ave
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Answer #1

Formula for arc elasticity is given as below

Arc elasticity =(Q2-Q1)/(Q1+Q2)/2÷(P2-P1)/(P1+P2)/2

=(8.5-8)/(8.5+8)/2÷(4800-5200)/(5200+4800)/2

=0.5/8.25÷(-400/5000)

=-0.061÷0.08

=-0.7625

=-0.76

Price elasticity of demand =-0.76

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