You are the curator of a museum. the museum is running short of funds, so you decide to increase revenue. when should you raise the admission price in order to increase revenue? never always only when demand is elastic only when demand is inelastic

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Kiara Acosta

Business

21 August, 02:42

You are the curator of a museum. the museum is running short of funds, so you decide to increase revenue. when should you raise the admission price in order to increase revenue? never always only when demand is elastic only when demand is inelastic

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Juan Friedman · Answer 1

You would only raise prices if the demand is inelastic. This means, if you raise the prices, it will have little effect on the number of people who purchase tickets, thus raising your revenue.

If demand we elastic and you raised prices, you run the risk of lowering the demand for the museum and ultimately lowering overall revenues.

Never and always are illogical responses to this question.