Ask Question
27 August, 01:56

If a university decreases the price of tickets to football games to collect more revenue, it is assuming that the demand for tickets is: a. price-inelastic. b. unstable. c. price unit-elastic

+2
Answers (1)
  1. 27 August, 03:18
    0
    The correct answer is letter "C": price unit-elastic.

    Explanation:

    Elasticity is the feature of goods and services by which their quantity demanded changes as long as their prices change. Elasticity is calculated by dividing the change percentage in quantity demanded by the change percentage in price. When the result is a figure equal to or greater than 1, the demand is elastic. If the figure is lower than 1, the demand is inelastic.

    Thus, the university is assuming the football game price ticket per unit is elastic since they believe that decreasing the tickets causes the quantity demanded will increase generating more revenue.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If a university decreases the price of tickets to football games to collect more revenue, it is assuming that the demand for tickets is: a. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers