○ If P1 were $25 and P2 was $40, the plan to reduce stadium size would be successful in increasing total revenue from ticket sales if D1 were the demand curve for tickets but would reduce total revenue from ticket sales if the demand was D2. If P1 were $25 and P2 was $40, the plan to reduce the stadium size would be successful in increasing total revenue from ticket sales if the D1 or D2 was the demand curve for tickets. none of the above. If P1 were $25 and P2 was $40, the plan to reduce the stadium size would be successful in increasing total revenue from ticket sales if the D2 were the demand curve for tickets but would reduce total revenue from ticket sales in the demand was D1. If P1 were $25 and P2 was $40, the plan to reduce the stadium size would be unsuccessful in increasing total revenue from ticket sales if D1 or D2 were the demand curve for tickets

○ If P1 were $25 and P2 was $40, the plan to reduce stadium size would be successful in increasing total revenue from ticket sales if D1 were the demand curve for tickets but would reduce total revenue from ticket sales if the demand was D2. If P1 were $25 and P2 was $40, the plan to reduce the stadium size would be successful in increasing total revenue from ticket sales if the D1 or D2 was the demand curve for tickets. none of the above. If P1 were $25 and P2 was $40, the plan to reduce the stadium size would be successful in increasing total revenue from ticket sales if the D2 were the demand curve for tickets but would reduce total revenue from ticket sales in the demand was D1. If P1 were $25 and P2 was $40, the plan to reduce the stadium size would be unsuccessful in increasing total revenue from ticket sales if D1 or D2 were the demand curve for tickets

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter12: More Realistic And Complex Pricing

Section: Chapter Questions

Problem 12.1IP

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The supply and demand schedules for tickets to basketball games in town of Oakwood are given in the table below.Price Quantity DemandedQuantity Supplied$65,0002,00074,0002,00083,0002,00092,0002,000101,0002,000The stadium owners need to find the optimum price for the games.What are the coefficients of elasticity of supply and demand if the price is raised from $6 to $8? Characterize the demand and supply for tickets based on the calculated elasticies. What is the optimum price that the stadium owners can set for the tickets? Why is the selected price for the tickets better than other prices given in the table above?
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