Exhibit 5-6 Demand curve for concert tickets
?
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
You might also like to view...
Why do economists abstract, and is it appropriate?
What will be an ideal response?
If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 10 percent and there is no inflation, what will be the level of investment in the economy?
A) $0 B) $200 C) $300 D) $500
The table above shows a total product schedule. Suppose that labor costs $20 per worker and fixed costs are $60. The average variable cost of producing 80 units equals ________ per unit
A) $0.75 B) $1.00 C) $1.75 D) $20 E) $0.25
Real output per capita: a. is measured by real GDP per capita
b. is total real output ( real GDP) divided by the number of persons among whom it will be distributed. c. is one measure of the average level of economic well being in a country. d. all of the above are correct.