Price P2 P1 20 D1

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 38P: Say that a certain stadium for professional football has 70,000 seals. What is the shape of the...
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Consider two possible demand curves for stadium seats-D1 and D2.
Price
P2
P1
20
D1
D2
50,000 85,000
Quantity
Transcribed Image Text:Consider two possible demand curves for stadium seats-D1 and D2. Price P2 P1 20 D1 D2 50,000 85,000 Quantity
O If
decreasing stadium size was unsuccessful whether the demand was D1 or D2 then D1 and D2
must be inelastic.
If decreasing stadium size was successful in increasing total ticket sales if the demand curve was
D1 but not of the demand curve was D2 then demand must inelastic on D1 and elastic on D2.
more than one answer is correct.
O lf decreasing stadium size was successful whether the demand was D1 or D2 then D1 and D2
must be elastic.
If decreasing stadium size was successful in increasing total ticket sales if the demand curve was
D2 but not of the demand curve was D1 then demand must inelastic on D2 and elastic on D1.
Transcribed Image Text:O If decreasing stadium size was unsuccessful whether the demand was D1 or D2 then D1 and D2 must be inelastic. If decreasing stadium size was successful in increasing total ticket sales if the demand curve was D1 but not of the demand curve was D2 then demand must inelastic on D1 and elastic on D2. more than one answer is correct. O lf decreasing stadium size was successful whether the demand was D1 or D2 then D1 and D2 must be elastic. If decreasing stadium size was successful in increasing total ticket sales if the demand curve was D2 but not of the demand curve was D1 then demand must inelastic on D2 and elastic on D1.
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