Question

If the San Diego Opera decreases the price of their opera tickets and their total revenue falls, then this suggests that, at the original price, the demand for tickets to the San Diego Opera was:_____

a. unit elastic.b. elastic.c. inelastic.d. either elastic or inelastic.

Answer 1

Answer: Inelastic

Explanation:

If the total revenue generated by the opera drops even after a reduction in the ticket prices, it means that the demand for the opera tickets is not affected by price changes therefore it is inelastic.

An inelastic demand is a demand for a product that is not affected by price changes of that product.