When the local symphony recently raised the ticket price for its summer concerts, the symphony was surprised to see that its total revenue had actually decreased. The reason for the decline in total revenue was that the demand for tickets was:
A)unit elastic.
B)perfectly inelastic.
C)relatively inelastic.
D)relatively elastic.
E)perfectly elastic.

Question

Quizplus · Accepted Answer

The decrease in total revenue despite an increase in ticket price indicates that the demand for tickets was relatively elastic. This means that the percentage change in quantity demanded was greater than the percentage change in price, leading to a decrease in total revenue.

When the Local Symphony Recently Raised the Ticket Price for Its