Expo 2000, the world's fair for that year, was held in Hanover, Germany. Tickets to Expo 2000 were initially priced at $12 each which generated sales of 60,000 tickets per day, well below the organizers' expectations. During the second week of the fair, the organizers responded by setting a special $5 price for Wednesday tickets. Attendance on that day jumped to 100,000.

a. Use the mid-point formula to calculate the price elasticity of demand for Expo 2000 tickets. Is demand elastic or inelastic?

b. Based on your value for price elasticity of demand, if organizers were interested in increasing total revenue from ticket sales should they have increased or decreased the ticket price?

c. If organizers wanted to increase attendance by 25% per day, by what percent would they have had to lower ticket prices?