If a University Decreases the Price of Tickets to Football

question 146

Multiple Choice

If a university decreases the price of tickets to football games in order to collect more revenue, it is assuming that the demand for tickets is:

• A) unstable.
• B) price inelastic.
• C) price elastic.
• D) unit price elastic.

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Definitions:

Competitive Industry

An industry characterized by numerous competitors, where businesses vie for market share by offering unique products, prices, or services.

Market Demand

The overall sum of a particular good or service that consumers in a marketplace are prepared and able to buy across a range of prices.

Market Equilibrium

A situation in a market where the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Competitive Industry

An industry characterized by a large number of firms competing with each other to provide goods or services to consumers.