If a Decrease in the Price of Football Tickets Increases

question 216

Multiple Choice

If a decrease in the price of football tickets increases the total revenue of the athletic department, this is evidence that demand is:

• A) price elastic.
• B) price inelastic.
• C) unit elastic with respect to price.
• D) perfectly inelastic.

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Definitions:

Sales Revenue

The total amount earned from the sale of goods or services before deducting any expenses, discounts, and returns.

Period Cost

Costs that are expensed in the period they are incurred, not directly tied to the production process and include expenses such as rent, utilities, and administrative salaries.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Factory Workers

Individuals employed in a manufacturing setting to operate machinery and assemble goods.