If the Canucks Lower Ticket Prices and Find That Total

question 96

Multiple Choice

If the Canucks lower ticket prices and find that total revenue does not change, then the price elasticity of demand for tickets is

• A)zero.
• B)greater than zero but less than 1.
• C)equal to 1.
• D)greater than 1.
• E)negative.

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Definitions:

Potential Entrant

Refers to a business or company that is not currently in a market but has the capability and interest to enter the market if certain conditions are met.

Dominant Strategy

A strategy in game theory that yields the best outcome for a player regardless of what strategies other players choose.

Nash Equilibria

A situation in a non-cooperative game where no player can benefit by changing strategies, assuming the other players also don't change their strategies.

Maximin Strategy

A decision rule in game theory that aims to maximize the minimum gain possible from a set of strategies.