Question

The price elasticity of demand for tickets to local baseball games is estimated to be equal to 0.89. In order to boost ticket revenues, an economist would advise:

Answer 1

Based on the fact that the price elasticity of demand is 0.89, an economist would advise increasing the price of the ticket.

Why should ticket prices be raised?

When the price elasticity of demand is less than 1, it means that demand is inelastic.

This allows one to increase the price of the service or good because demand will decrease less than the revenue will increase which would lead to more profit.

Find out more on inelastic demand at https://brainly.com/question/28001343

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