If the Canucks lower ticket prices and find that total revenue does not change, then the price elasticity of demand for tickets is
A)zero.
B)greater than zero but less than 1.
C)equal to 1.
D)greater than 1.
E)negative.

Question

Quizplus · Accepted Answer

If the total revenue does not change, it means that the increase in quantity demanded due to the lower ticket prices is equal to the decrease in price per ticket. This indicates a price elasticity of demand of 1, meaning a 1% change in price causes a 1% change in quantity demanded.

If the Canucks Lower Ticket Prices and Find That Total