The point price elasticity of demand is calculated as
K_d=∆Q/Q1:∆Р/Р1
So,
∆P=(∆Q×P1)/(Q1×K_d )
∆P=((80,000-50,000)×$30)/(50,000×(-4) )=4.5
So, the team has to charge the price 30-4.5=$25.5
If the price were to be decreased to $27 and the average attendance increased to 60,000, the price elasticity is
K_d=∆Q/Q1:∆Р/Р1=(60,000-50,000)/50,000÷(27-30)/30=-2
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