Table 5-1

-Refer to Table 5-1.Notice that lowering the price from $12 to $8 per ticket decreases revenue by $8000.In the $8 to $12 price range,what must the demand for baseball tickets be
A)price inelastic
B)price elastic
C)price unit elastic
D)income elastic

Question

Table 5-1
 
-Refer to Table 5-1.Notice that lowering the price from $12 to $8 per ticket decreases revenue by $8000.In the $8 to $12 price range,what must the demand for baseball tickets be
A)price inelastic 
B)price elastic 
C)price unit elastic 
D)income elastic

Quizplus · Accepted Answer

When lowering the price from $12 to $8 decreases revenue, it indicates that the demand is price inelastic in this range. This is because the percentage decrease in price leads to a smaller percentage increase in quantity demanded, resulting in a decrease in total revenue.

Table 5-1 -Refer to Table 5-1.Notice That Lowering the Price from $12