Note AcademyNote Academy

Economics · May / June 2017 · Paper 11 · Question 6

2281Price elasticity of demand (PED)

A football club raises all stadium seat prices by 5%. The stadium is divided into four zones. The demand for seats falls by 1% in zone W, by 3% in zone X, by 5% in zone Y and by 6% in zone Z. In which zone is the responsiveness of demand for seats to the price change elastic?

  1. Azone W
  2. Bzone X
  3. Czone Y
  4. Dzone Z

As printed in the paper

Show the answer

Correct answer: D. zone Z

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.