sold. However, if the 15,000-seat arena is all that is available or if a larger arena would add substantially to

costs, then this option may not work.

Conversely, a few bands are so famous, or have such fanatical followings, that demand for tickets may be

inelastic right up to the point where the arena is full. These bands can, if they wish, keep raising the ticket

price. Ironically, some of the most popular bands could make more revenue by setting prices so high that the

arena is not full—but those who buy the tickets would have to pay very high prices. However, bands sometimes

choose to sell tickets for less than the absolute maximum they might be able to charge, often in the hope that

fans will feel happier and spend more on recordings, T-shirts, and other paraphernalia.

Can Businesses Pass Costs on to Consumers?

Most businesses face a day-to-day struggle to figure out ways to produce at a lower cost, as one pathway to their
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