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Alina [70]
3 years ago
15

An article in the New York Times about the New York Metropolitan Opera​ (the Met) suggests that the popularity of opera might be

increased if the Met reduced its ticket prices. But the article observes that such ticket price cuts would only be possible if the Met received a gift from​ "a very​ deep-pocketed donor."​Source: Zachary​ Woolfe, et​ al., "The Met Opera Is Struggling. How Can It Fill Those Empty​ Seats?" New York Times​, May​ 4, 2016.The authors of the article are assuming a cut in ticket​ prices, and assuming there is no gift from a​ "very deep-pocketed​ donor," __________ (will/will not) increase the​ Met's revenue. The authors are assuming the price elasticity of demand for tickets to the Met is:A. inelastic.B. unit elastic.C. elastic.D. infinite.
Biology
1 answer:
vovikov84 [41]3 years ago
3 0

Answer:

The correct answers are "will not" and option B. "unit elastic".

Explanation:

The authors of an article in the New York Times about the New York Metropolitan Opera (the Met) suggest that the popularity of opera might be increased if the ticket prices for the opera are reduced, but in order to do so,  the Met should receive a very generous economical gift. The authors of the article make this statement based on two assumptions: first, the Met will not increase its revenue as a result of the gift (therefore the money will be used to support a reduction in the ticket prices) ; and second, the demand for tickets to the Met is unit elastic (the demand would increase proportionally to the reduction in price, therefore the popularity of opera might be increased).

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