Suppose the Oakland Raiders football team increases their season ticket prices and total revenue from ticket sales falls,but not to zero.This fact means that the demand for Raiders tickets is
A) inelastic.
B) elastic.
C) unit elastic.
D) perfectly elastic.
E) perfectly inelastic.

Question

Quizplus · Accepted Answer

If an increase in price leads to a decrease in revenue, it implies that the demand is price-sensitive and responsive. In other words, when the ticket price increases, customers tend to reduce their demand for Raiders tickets, and as a result, the total revenue from ticket sales falls. This phenomenon only happens for elastic demand, not for inelastic or unit elastic demand. Therefore, the best choice is B) elastic.

Suppose the Oakland Raiders Football Team Increases Their Season Ticket