3. The Memphis Redbirds , a AAA Minor League baseball team,are deciding how to price tickets for their upcoming (2022) seasonand trying to predict ticket demand. They hire you to helpthem.

   1. You find that the elasticity of ticket sales with respect to thepopulation of Memphis is 0.7. The Director of BaseballOperations asks you what this number means in words. What do youtell him?

   2. The population of Memphis in 2021 was 907,500. Assumepopulation growth here continues at its breakneck pace of 15%between 2021 and 2022. What is the predicted change in ticket salesfrom this increase in population?

   3. The current ticket price is $10.00, and the price elasticity oftickets is -0.6. Management says they are interested in raising theprice by $1 and ask you what the predicted percent change intickets sold would be. What do you tell them?

   4. On average, a fan spends $8.00 on refreshments during a game.Total revenue per ticket sold is therefore currently equal torevenue from the ticket itself plus revenue from concession standsales. How would total revenue change if ticket priceswere to increase by $1?

Answer rating: 100% (QA)

Step 1 1 It is the ratio of percentage change in ticket sales to percentage change in population If ... View the full answer