Elasticity is a term used in economics to describe how the quantity demanded of a good or service changes in response to

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Elasticity Is A Term Used In Economics To Describe How The Quantity Demanded Of A Good Or Service Changes In Response To 1 (195.59 KiB) Viewed 20 times

Elasticity is a term used in economics to describe how the quantity demanded of a good or service changes in response to price changes for that good or service. a) Assume the demand for a concert tour is inelastic. To pay the salary of a star singer, you would like to increase the total revenue from ticket sales. Should you increase or decrease the price of a ticket to increase the revenue? Explain. (4 Marks) b) If the cross-price elasticity of demand between two goods is negative, what is the relationship between the two goods? Justify your answer. (2 Marks) c) If the cross-price elasticity is positive, what is the relationship between two goods? Justify your answer. (2 Marks) d) What is the elasticity of demand for cigarette smokers? Justify your answer. (2 Marks)