You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?
A. Mary is correct if the demand for tickets is price inelastic.
B. Mary is incorrect if the demand for tickets is price inelastic.
C. Mary is correct. The increase in ticket prices will always increase revenue.
D. Mary is incorrect. The increase in ticket prices will never increase revenue.
Answer: A
You might also like to view...
The expected rate of return from a share of stock consists of:
a. a dividend return b. capital appreciation (or depreciation) c. interest d. a and b only e. a, b, and c
Answer the following statements true (T) or false (F)
1. Inventory depletion can lead to increased production. 2. During the expansion phase of the business cycle, profit margins increase due to a widening cost-price relationship. 3. Population growth and wars are examples of external forces affecting the economy’s cyclical movements. 4. As the economy moves into the trough of the business cycle, there is a sizable reduction in the output of capital goods. 5. The roughly coincident indicators have their upward and downward turning points prior to the upward and downward turning points of real GDP.