The local National Hockey League (NHL) team decides to lower its ticket prices in order to attract more fans. They are hoping that the:

Question

Quizplus · Accepted Answer

The NHL team is hoping that the quantity increase matters more than the price decrease to total revenue, which means that they are hoping for an elastic demand. Inelastic demand means that a price decrease will not lead to a large enough increase in quantity demanded to make up for the loss in revenue from the price decrease. Unitary elastic demand means that the increase in quantity demanded is proportional to the decrease in price, resulting in no change in total revenue. Perfectly elastic demand means that any increase in price will result in a complete loss of customers, which is not desirable. Therefore, the best choice is C.

The Local National Hockey League (NHL) Team Decides to Lower