The local symphony recently raised its price for tickets to their summer concerts in the park.At the end of the summer season, the symphony was surprised to see that total revenue had actually decreased.The reason was that the elasticity of demand for tickets was
A)unit elastic.
B)inelastic.
C)elastic.
D)Not enough information is given.

Question

Quizplus · Accepted Answer

The fact that the total revenue decreased despite an increase in ticket prices suggests that the demand for tickets is elastic, meaning that consumers are sensitive to changes in price and reduced their overall consumption of tickets in response to the price increase.

The Local Symphony Recently Raised Its Price for Tickets to Their