Use the following table to answer the next question The Uret

Use the following table to answer the next question. The Uretown Yokels ice hockey team is the only live sports entertainment in Uretown.

      Ticket Price                Total Attendance             Total Revenue                  Marginal Revenue

               $14                                      100                             $1400            

               $12                                      200                             $2400                                           $10

$10                                      300                             $3000                                           $6

$8                                         400                             $3200                                           $2

$6                                         500                             $3000                                           -$2

$4                                         600                             $2400                                           -$6

9.        At a price of $8 per ticket, the Yokels attract 400 spectators. For the Yokels to attract 500 spectators, they would have to ______________ price. Total revenue would ________________ .

a.   increase; increase b.   increase; decrease     c.   decrease; increase       d.   decrease; decrease

Solution

The right answer is Option D. decrease; decrease

Explanation: From the given data, we can say that 500 spectators attend when ticket price $6. So, in order to increase spectators from 400 to 500, ticket price needs to be decreased from $8 to $6. Also, the revenue goes down from $3,200 to $3,000.