You are part of a local community theater group. Its goal is to raise as much revenue as possible. Mary suggests raising ticket prices. Is she right?
A) yes if the demand for tickets is price inelastic
B) no if the demand for tickets is price inelastic
C) yes because raising prices always increases revenue
D) no because raising prices reduces sales and revenue
E) most likely because the demand curve for theater tickets is typically inelastic

Question

Quizplus · Accepted Answer

If the demand for tickets is price inelastic, raising prices will lead to a smaller percentage decrease in quantity demanded, thus increasing total revenue.

You Are Part of a Local Community Theater Group