An increase in the price of tickets to a popular sporting event will increase total revenue if
A)there are many substitutes for this form of entertainment.
B)the ticket is considered to be a luxury.
C)the buyers of the tickets are fanatic about the event.
D)the fans are price conscious.

Question

Quizplus · Accepted Answer

The demand for tickets by fanatic fans is likely to be inelastic, meaning their quantity demanded doesn't decrease significantly with an increase in price. Therefore, increasing ticket prices in this scenario would increase total revenue because the decrease in quantity demanded is outweighed by the increase in price per ticket.

An Increase in the Price of Tickets to a Popular