Final answer:
A product in Sports and Entertainment Management with elastic demand is concert tickets, as changes in price significantly affect demand. If demand is elastic, lowering prices can help sell more tickets and increase revenue, unless higher costs from larger venues offset the gains.
Step-by-step explanation:
In Sports and Entertainment Management, an example of a product with elastic demand is concert tickets for a popular band. The demand for concert tickets is elastic because changes in the price can have a significant impact on the quantity demanded. If a band keeps cutting ticket prices and the demand remains elastic, they might sell all the seats available in an arena. Yet, moving to a larger arena is only viable if it doesn't add substantially to costs. Here, price elasticity of demand is crucial. This concept means that if demand is elastic at a certain price level, lowering the price will lead to a larger percentage increase in the quantity sold, raising total revenue. Conversely, if demand is inelastic, hiking the ticket prices will lead to a smaller decrease in quantity sold, also increasing revenue.