Exhibit 5-7 Demand curve for concert tickets

In Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:
A) increase because demand is inelastic in this price range.
B) increase because demand is elastic in this price range.
C) decrease because demand is inelastic in this price range.
D) decrease because demand is elastic in this price range.

Question

Exhibit 5-7 Demand curve for concert tickets
​

In Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:
A) increase because demand is inelastic in this price range. 
B) increase because demand is elastic in this price range. 
C) decrease because demand is inelastic in this price range. 
D) decrease because demand is elastic in this price range.

Quizplus · Accepted Answer

The Answer of Exhibit 5-7 Demand curve for concert tickets
​

In Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:
A) increase because demand is inelastic in this price range. 
B) increase because demand is elastic in this price range. 
C) decrease because demand is inelastic in this price range. 
D) decrease because demand is elastic in this price range.

Exhibit 5-7 Demand Curve for Concert Tickets