A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2023 · Q81 Mark
A sports stadium has two prices of seats. The cheaper seats are $10 and the more expensive seats are $20. When the prices of all seats are increased by 10%, the effects on demand are a fall of 5% for the cheaper seats and a fall of 12% for the more expensive seats. What describes the responsiveness of demand to the change in price?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Aelastic, elastic
Belastic, inelastic
Cinelastic, elastic
Dinelastic, unitary elasticity
✓ Correct answer
C: inelastic, elastic
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