If a consultant to a football team owner suggests that ticket prices be raised in order to increase revenue, the consultant must believe that the price elasticity of demand for football tickets is
A)equal to infinity.
B)less than 1.
C)greater than 1.
D)equal to 1.
E)There is not enough information provided to answer this question.

Question

Quizplus · Accepted Answer

If the consultant is suggesting to raise ticket prices to increase revenue, it implies that they believe that demand for football tickets is not highly responsive to changes in prices, i.e., the price elasticity of demand is less than 1.

If a Consultant to a Football Team Owner Suggests That