An increase in the price of tickets to a popular sporting event will increase total revenue if
A) there are many substitutes for this form of entertainment.
B) the ticket is considered to be a luxury.
C) the buyers of the tickets are fanatic about the event.
D) the fans are price conscious.

Question

Quizplus · Accepted Answer

If the buyers of the tickets are fanatic about the event, they are likely to be less sensitive to price changes, meaning the demand is inelastic. In such cases, an increase in price will lead to an increase in total revenue.

An Increase in the Price of Tickets to a Popular