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:

Consumer Equilibrium

Consumer Equilibrium is the state where a consumer has balanced their expenditures across different goods to maximize total utility given their budget constraint.

Utility

In economics, the satisfaction or benefit derived from consuming a product or service.

Consumer Equilibrium

The point at which the amount of a product demanded by consumers equals the amount supplied, leading to a stable market price.

Utility Maximization

The process by which individuals choose consumption combinations that maximize their satisfaction or utility under given constraints.