Define elastic portion of the demand curve for tickets

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Reference no: EM131774780

Question: Based on resale prices for tickets for the 2013 Super Bowl in New Orleans, face - value prices for the most expensive tickets to the 2014 game are expected to more than double, with significant price increases for lesser-valued tickets as well. Evidence indicates that sports teams are more interested in maximizing attendance instead of ticket revenue, since greater attendance means more spending on items such as parking and concessions. Higher ticket prices in secondary markets seem to verify that teams are charging less than they could be if their goal was to maximize ticket revenue. Source:Patrick Rishe, "Super Bowl XLVIII Pricing:A Lesson In Demand Elasticity," Forbes, September 19, 2013. Refer to the Article Summary. How would sports teams know if they were operating on the elastic portion of the demand curve for tickets?

A. If they increased ticket prices and the total revenue from ticket sales decreased.

B. If they increased ticket prices and the total revenue from ticket sales increased.

C. If they increased ticket prices and the total revenue from ticket sales did not change.

D. If they decreased ticket prices and the total revenue from ticket sales did not change

Reference no: EM131774780

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