Elasticity measures how sensitive consumers are by measuring ...

[aabwk4]

Elasticity measures how sensitive consumers are by measuring their change in ____ as the price of the product changes.
 a. attitude
  b. income
  c. quantity demanded
  d. supply
  e. taxes

Question 2

You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?
 a. Mary is correct if the demand for tickets is price inelastic.
  b. Mary is incorrect if the demand for tickets is price inelastic.
  c. Mary is correct. The increase in ticket prices will always increase revenue.
  d. Mary is incorrect. The increase in ticket prices will never increase revenue.
  e. Mary is incorrect. The way to increase revenue is to decrease ticket prices.

[recede]

Answer to Question 1

c

Answer to Question 2

a

[aabwk4]

Thanks for the timely response, appreciate it

[ricroger]

Gracias!