Empirical estimate of the price elasticity of demand, Ask an Expert

Economics

The model developed of short run revenue maximization predicts that sports teams should price tickets where price elasticity of demand is greater than or equal to one. Empirical estimate of the price elasticity of demand indicate that teams actually price in the inelastic portion of the demand curve. Give one example why teams might price their tickets like this.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9439626

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