A 10% increase in the price of movie ticket in Westridge 8 leads to a 15% decrease in the number of tickets sold, indicating the demand for movie ticket in Westridge 8 is:

a) elastic.
b) inelastic.
c) unit elastic.
d) Can not tell from the information given.

a) elastic.

Explanation:

We know, as per the law of demand, demand decreases with the increase in price.

Price elasticity of demand is the big shift in demand for goods and services by a consumer in response to the changes in the price of goods and service and no factor changes. These goods are highly sensitive to the change in the price of goods, which leads to a higher proportion of change in demand for goods than the change in price.  

In the given case, there is just a 10% increase in the price of a movie ticket. which lead to a 15% decrease in demand for movie tickets.

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is this a