00:01
The price of movie tickets increased from 10 to 14, and the quantity of tickets demanded decreased from 600 to 400.
00:08
We want to find the price elasticity of demand.
00:11
The price elasticity is e equals the absolute value of the percent change in quantity divided by the percent change in price.
00:20
So if we look at the quantity, it's a decrease from 600 to 400.
00:27
So to find the percent change, that's just the change divided by the original value.
00:44
So the change, how much did the price change? well, it decreased by 200 tickets.
00:54
So the change would be minus 200.
00:58
The original value would be the 600, what we started with.
01:01
So we could reduce that to negative one -third.
01:04
That is our percent change in quantity.
01:09
That's the percent change in the quantity...