Question

Suppose the San Francisco 49ers lower ticket prices by 15 percent and as a result the quantity of tickets demanded increases by 10 percent. This set of results shows that San Francisco 49ers tickets have:____________
a) an inelastic supply
b) an inelastic demand
c) an elastic supply
d) an elastic demand.

Answer 1

Answer:

B. An inelastic demand

Explanation:

Demand is said to be inelastic if a larger change in price leads to a small or slight change in the quantity of goods demanded.  

For example: If a 30% fall in price brings about less than 30% or no rise at all in demand, it is said to be inelastic demand.

Therefore in the case of San Francisco 49ers, their tickets have an inelastic demand because a 15% fall in price of the tickets brings about only 10% increase in the demand for their ticket which is lesser than the percentage of fall in the price of the tickets.