Economics (AS & A Level) · Feb / March 2023 · Paper 12 · Question 8

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?

1. Acheaper seats: elastic; more expensive seats: elastic
2. Bcheaper seats: elastic; more expensive seats: inelastic
3. Ccheaper seats: inelastic; more expensive seats: elastic
4. Dcheaper seats: inelastic; more expensive seats: unitary elasticity

As printed in the paper