Answer:
The correct answer is option b.
Explanation:
The price elasticity of demand is 1.75.
Madison Mallard’s ball club is suffering from low revenues and profits.
The company wants to increase ticket revenue
The price elasticity of demand is greater than 1 which implies that demand relatively prices elastic.
Elastic demand means that a change in price will cause the quantity demanded to change to a greater extent. So if the company wants to increase revenue it should decrease the price.
A decline in price will cause the quantity demanded to increase to a greater extent. This will cause total revenue to increase.
