Final answer:
Dynamic Pricing is the method that allows ticket prices to change based on various factors including demand and remaining ticket quantity. It's closely connected to the concept of price elasticity of demand, affecting how bands might price tickets and merchandise.
Step-by-step explanation:
The pricing method that allows ticket prices to change throughout the season based on factors such as the number of remaining tickets available is known as Dynamic Pricing. This strategy adjusts prices in real-time based on supply and demand. For instance, ticket prices for a popular band with inelastic demand could potentially keep increasing as the arena fills up. However, such bands might choose not to maximize ticket prices, hoping to maintain good relations with fans, who may then be more willing to spend on merchandise.
Understanding the concept of price elasticity of demand is crucial here. When demand is elastic, consumers are sensitive to price changes, leading to a proportionally larger change in quantity demanded compared to the price change. In the case of inelastic demand, consumers are less sensitive to price changes, hence the quantity demanded does not change as much in response to a change in prices. Total revenue can be impacted depending on whether the demand is elastic or inelastic.