The General Manager of the Local Hockey Team Hires You

Multiple Choice

The general manager of the local hockey team hires you to help maximize the team's total revenue. She explains that most costs are constant because the entire staff must always be available in case the arena reaches its maximum capacity. If your task is to maximize total revenue from ticket sales, then your advice to the manager would be to set the ticket price

A) in the inelastic region of ticket demand in order to increase total revenue.
B) in the elastic region of ticket demand in order to increase total revenue.
C) as close as possible to the point where the price elasticity of demand equals 1.
D) very low to make sure that the arena is always full.