This bloody question drives me mad!

4. A London theatre sells an average of 1,000 tickets per performance at a price of £20 each.
There are still many empty seats for each performance. The owner conducts market
research and finds that price elasticity of demand for the theatre’s tickets is -2.
If the owner reduces the price of each ticket by 10%, the change in total revenue for each
performance is likely to be:

A +£1600
B -£1000
C -£1600
D +£1000
Answer (1)
Explanation
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
(4)

Reply 1