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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

User Thegreatt
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4 votes

Answer:

Elastic which is more than 1.

Step-by-step explanation:

Price elasticity of demand is the responsive relationship of quantity demanded when compared to price. It measures how much change there would be in demand if Price were to change.

The raise in prices yielded a fall in revenue because the demand for tickets was elastic. (More than 1)

An elastic demand means that a small change in price will cause a more than proportionate change in qty demanded and hence with an increase in price, far less people purchased the ticket.

An inelastic demand however would have caused less people to give up tickets and raised overall revenues.

Hope that helps.

User Ivanleoncz
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