You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?
A) Mary is correct if the demand for tickets is price inelastic.
B) Mary is incorrect if the demand for tickets is price inelastic.
C) Mary is correct. The increase in ticket prices will always increase revenue.
D) Mary is incorrect. The increase in ticket prices will never increase revenue.

Question

Quizplus · Accepted Answer

Mary is correct if the demand for tickets is price inelastic because in such a case, an increase in price does not significantly reduce the quantity demanded, leading to an increase in total revenue.

You Are Part of a Local Community Theater Group