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Given that revenues increased when concession prices fell, what can you say about the price elasticity of demand for stadium food? Merchandise sales also increased
Given that revenues increased when concession prices fell, what can you say about the price elasticity of demand for stadium food? Merchandise sales also increased after food prices fell. Is the cross-price elasticity of demand between food and merchandise positive or negative? What impact do you expect this to have on ticket sales? Use supply and demand analysis to predict how ticket prices might be affected. (Assume supply is perfectly inelastic.)
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