A local theatre sells 1,600 tickets a week at £20 each. For a price change from £20, the theatre estimates that the price elasticity of demand is -1.6. It is considering reducing the ticket price by 7.5%.
Calculate the new number of tickets demanded per week if the theatre reduces the ticket price by 7.5%.
Calculate the change in the theatre's weekly total revenue following the price reduction.
82 exam-style questions on OCR GCSE Economics 2.2 Demand, covering 2.2.1 What is demand, 2.2.2 Draw a demand curve using data, 2.2.3 Explain a demand curve, 2.2.4 Shifts and movements of the demand curve, 2.2.5 Causes and consequences of demand changes, 2.2.6 Price elasticity of demand, 2.2.7 Draw demand curves of different elasticity, and 2.2.8 Importance of price elasticity of demand. Each one has a worked solution and a mark scheme showing where the marks go.