I want to increase revenue by raising ticket prices to GWU basketball games. Ass

Question

I want to increase revenue by raising ticket prices to GWU basketball games. Assuming the law of demand is in effect, which of the following is true concerning the elcaticity of demand for GWU basketball tickets.

If demand is elastic, then revenue will increase

If demand is inelastic, then revenue will increase

Demand must be perfectly elastic for revenue to increase

None of the above is necessarily true

If demand is elastic, then revenue will increase

If demand is inelastic, then revenue will increase

Demand must be perfectly elastic for revenue to increase

None of the above is necessarily true

Explanation / Answer

Demand must be perfectly elastic for revenue to increase

because the law of demand states that an increase in price always leads to a decrease in the quantity demanded,

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