LaTonya Horton works for the Spurs organization and is responsible for managing ticket sales. She knows that ticket price and season ticket packages are related to consumers' interest in purchasing tickets and she tries to price individual tickets and packages at the level where ticket sales and profitability are maximized for the Spurs home games. LaTonya typically tests the _______ of demand by creating special events or special sales where she adjusts the price of tickets so she can determine the best price that maximizes profitability for the organization.
A) price elasticity
B) quantity
C) feasibility
D) sensitivity
E) fluctuation

Question

Quizplus · Accepted Answer

LaTonya is testing the price elasticity of demand, which refers to the responsiveness of consumers to changes in price. By creating special events and adjusting ticket prices, she can observe how much the demand for tickets changes with different prices. This allows her to determine the optimal price that will maximize profitability for the organization.

LaTonya Horton Works for the Spurs Organization and Is Responsible