An Increase in the Price of Tickets to a Popular

question 58

Multiple Choice

An increase in the price of tickets to a popular sporting event will increase total revenue if

• A)there are many substitutes for this form of entertainment.
• B)the ticket is considered to be a luxury.
• C)the buyers of the tickets are fanatic about the event.
• D)the fans are price conscious.

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Definitions:

Accrued Revenue

Revenue that has been earned but not yet received in cash or recorded by the accounting system.

Management Fees

Fees paid to managers for operating investment funds or managing assets.

Unrealised Profit

Profit that has been earned but not yet received in cash or recorded in the financial statements, often resulting from intra-company transactions.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.