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Coach Ballford: "To Increase Our Revenue from Football Games, We

Question 183

Multiple Choice

Coach Ballford: "To increase our revenue from football games, we need to lower ticket prices." University President Smith: "Coach, that would be counterproductive; a reduction in ticket prices would reduce our revenue, not increase it." Which of the following best explains this disagreement?


A) The coach thinks that demand is elastic, whereas the university president thinks that demand is inelastic.
B) The coach thinks that demand is inelastic, whereas the university president thinks that demand is elastic.
C) The coach believes that lower ticket prices will increase attendance, but the university president must not believe attendance will increase when prices are lowered.
D) Although both the coach and the president believe demand is of unitary elasticity, they disagree about how much attendance will rise.

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