Answer to Question #47802 in Microeconomics for Yoyo

Question

Assume that the Y would sell out every game even if ticket prices were higher and that the B never fill their stadium. Each team should raise prices if they want more revenue.

Answer 1

If Y would sell out every game even if ticket prices were higher, the demand for its tickets is inelastic, and if B never fill their stadium, the demand for their tickets is elastic. So, first team should raise prices to increase revenue, but second team should decrease its prices to increase revenue.