Exhibit 5-6 Demand curve for concert tickets

-In Exhibit 5-6, if promoters lower their ticket price form $30 to $20, then:
A) they will receive less money from their ticket sales.
B) people will continue to buy the same number of tickets.
C) customers will spend less total money on concert tickets.
D) both ticket sales and total revenue will rise.

Question

Exhibit 5-6 Demand curve for concert tickets
​ 
-In Exhibit 5-6, if promoters lower their ticket price form $30 to $20, then:
A) they will receive less money from their ticket sales. 
B) people will continue to buy the same number of tickets. 
C) customers will spend less total money on concert tickets. 
D) both ticket sales and total revenue will rise.

Quizplus · Accepted Answer

According to the demand curve, lowering the ticket price from $30 to $20 will increase the quantity demanded of tickets. As a result, both ticket sales and total revenue (quantity demanded multiplied by the price) will increase. Therefore, choice D is the correct answer.

Exhibit 5-6 Demand Curve for Concert Tickets