Question

Determine whether the statement makes sense​ (or is clearly​ true) or does not make sense​ (or is clearly​ false). Explain your reasoning.

There is a strong negative correlation between the price of tickets and the number of tickets sold. This suggests that in order to sell a lot of​ tickets, the price should be lowered.
_______________________________
Choose the correct answer below.
A. The statement does not make sense. To increase the ticket​ sales, the price should be increased since there is a strong negative correlation.
B. The statement does not make sense. The strong negative correlation is a​ coincidence, so lowering the ticket price will not affect ticket sales.
C. The statement makes sense. People will not want to but more tickets when the ticket prices are lower.
D. The statement makes sense. To increase the ticket​ sales, the price should be decreased since there is a strong negative correlation.

Answer 1

Step-by-step explanation:

D. The statement makes sense. To increase the ticket sales, the price should be decreased since there is a strong negative correlation.

The statement is logical and reflects a well-established economic principle, which is the law of demand. According to this law, as the price of a good or service decreases, the quantity demanded of it increases. Conversely, as the price of a good or service increases, the quantity demanded of it decreases. In this case, the strong negative correlation between the price of tickets and the number of tickets sold indicates that as the price of tickets increases, the number of tickets sold decreases, and vice versa. Therefore, to increase ticket sales, the price should be lowered.