Question

To ensure a big fan turnout for a traditional rival, suppose the Arizona State Sun Devils offer one-half off the $16 regular price of reserved seats for a women’s basketball game, and sales jumped from 1,750 to 2,750 tickets.
A. Calculate ticket revenues at each price level. Did the pricing promotion increase or decrease ticket revenues?
B. Estimate the reserved seat demand curve, assuming that it is linear.
C. How should ticket prices be set to maximize total ticket revenue? Contrast this answer with your answer to part A.



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  • CreatedFebruary 13, 2015
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