Answer:
To solve this problem, we need to calculate the revenue generated by selling tickets at each price point, and then compare the two values.
At $15 per ticket, the team can sell all 1,000 seats, generating a total revenue of:
Revenue = Price x Quantity = $15 x 1,000 = $15,000
At $20 per ticket, the team will only sell 90% of the seats, or 0.9 x 1,000 = 900 seats. The total revenue generated at this price point will be:
Revenue = Price x Quantity = $20 x 900 = $18,000
Therefore, the team will generate $18,000 in revenue if it sells tickets for $20, compared to $15,000 if it sells tickets for $15.
To calculate the percentage increase in revenue, we can use the following formula:
% increase = (new value - old value) / old value x 100%
Plugging in the values, we get:
% increase = ($18,000 - $15,000) / $15,000 x 100% = 20%
Therefore, the team will increase its revenue by 20% if it decides to sell tickets for $20.