P1= $400, Q1=10000 P2= $380, Q2=12000 Price elasticity of demand = %change in Quantity demanded/ % change in price = [(Q2-Q1)/(P2-P1)] *( P1/Q1) Price elasticity of demand= [(12000-10000)/(380-400)]*(400/10000) = (2000/ -20) * (400/10000) = -100*0.04 = -4 Price elasticity of demand for ski passes= -4 Since the absolute value of price elasticity of demand is greater than 1 therefore the demand for ski passes is elastic with respect to price