Question: A theater on Broadway recently increased the price of a ticket for a popular play by 2%. The attendance went down by 6%. What is

A theater on Broadway recently increased the price of a ticket for a popular play by 2%. The attendance went down by 6%. What is the price elasticity of demand for tickets for this play?

Is the price elasticity of demand for tickets considered elastic or inelastic? Why?

What factors, besides the increase in the price of the ticket, may have contributed to the reduction in attendance?

How would a further increase in the price of the ticket affect the theater revenue?

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