On increasing the price of tickets for a show by 20 % the audience decreases by 30%. What is the effect on revenue?

4% decrease 4% increase 16% decrease 16% increase

16% decrease

Assume that: Initial price → 10 Initial audience → 100 Initial revenue → 1000 After increase: New price → 12 New audience → 70 New revenue → 840   Thus, percentage decrease in revenue → \(\frac{\text{1000 - 840} }{1000 }\) x 100 = 16%