Exhibit 5-6 Demand curve for concert tickets
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In Exhibit 5-6, if promoters lower their ticket price from $30 to $20, then:
A. ticket sales will increase but total revenue will decrease because demand is inelastic between $30 and $20.
B. both ticket sales and total revenue will increase because demand is inelastic between $30 and $20.
C. ticket sales will decrease but total revenue will increase because demand is elastic between $30 and $20.
D. both ticket sales and total revenue will increase because demand is elastic between $30 and $20.
Answer: D
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