ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You are on a committe that is considering ways to raise money for your city’s symphony program. You would recommend increasing the price of symphony tickets only if you thought the demand curve for these tickets was
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Inelastic
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Elastic
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Unit Elastic
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Perfectly Elastic
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Explanation:
Detailed explanation-1: -Answer and Explanation: To raise money for a symphony program you want to increase the total revenue of the show since the cost is likely constant regardless of how many people attend. Total revenue only increases though when raising prices if demand is inelastic.
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