Asked by Laura Cinnamon on Jul 14, 2024
Verified
If the University Chamber Music Society decides to raise ticket prices to provide more funds to finance concerts, the Society is assuming that the demand for tickets is
A) parallel to the horizontal axis.
B) shifting to the left.
C) inelastic.
D) elastic.
University Chamber Music Society
An organization within a university that promotes the performance and appreciation of chamber music among students and the community.
Inelastic
Refers to a situation where the demand or supply for a good or service is not significantly altered by changes in price.
Concerts
Public performances of music by artists in front of an audience.
- Perceive the impact of elasticity variations on the overall income of companies due to price modifications.
Verified Answer
QA
Qasim AbosiJul 19, 2024
Final Answer :
C
Explanation :
The Society is assuming that the demand for tickets is inelastic, meaning that an increase in price will not lead to a proportionate decrease in quantity demanded. This assumption allows them to expect more revenue from higher prices, as the decrease in tickets sold will not offset the increase in price.
Learning Objectives
- Perceive the impact of elasticity variations on the overall income of companies due to price modifications.
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