An Economist Estimates the Elasticity of Demand for Baseball Tickets

question 111

Multiple Choice

An economist estimates the elasticity of demand for baseball tickets to be 0.23. Using this information, a club that wants to raise revenues should:

• A) lower ticket prices.
• B) increase ticket prices.
• C) leave ticket prices unchanged, because it is maximizing revenue.
• D) raise the prices of other goods sold at games.

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Definitions:

Balanced Scorecard

A strategic planning and management system used to align business activities with the vision and strategy of the organization, track performance against strategic goals, and improve internal and external communications.

Global Reporting Initiative

An international organization that helps businesses and governments worldwide understand and communicate their impact on critical sustainability issues.

Strategic Performance Measurement System

A framework to track and evaluate an organization's performance against its long-term strategic goals.

Performance Measurement System

A performance measurement system is a set of metrics used to quantitatively gauge an organization's performance over time towards its goals.