Managerial Economics 7th Edition by Paul Keat ,Philip Young,Steve Erfle

Exercise 8

The Mesa Redbirds football team plays in a stadium with a seating capacity of 80,000. However, during the past season, attendance averaged only 50,000. The average ticket price was $30. If price elasticity is 4, what price would the team have to charge in order to fill the stadium If the price were to be decreased to $27 and the average attendance increased to 60,000, what is the price elasticity