If the absolute price elasticity of demand for concert tickets is 0.75, an increase in ticket prices will
A) increase total revenue.
B) decrease total revenue.
C) not change the elasticity of demand.
D) not change total revenue.

Question

Quizplus · Accepted Answer

When the absolute price elasticity of demand is less than 1 (inelastic), an increase in price leads to an increase in total revenue.

If the Absolute Price Elasticity of Demand for Concert Tickets