Necessity type products as well as addictive goods tend to have inelastic demand where as luxury type products tend to be elastic. Short run and long run studies using time series data indicate that various performing arts show an inelastic demand. This implies one can raise revenues by increasing price of admission for many types of performing arts events. One would expect that given the large number of substitutes available for entertainment events, demand would be elastic for the performing arts. This is the explanati on for why performing arts have inelastic demand.
Income elasticity measures the consumers' response to a change in income.
Income elasticity measures the percent change in quantity demanded due to a percent change in income. Cross section and time series data show that theater and opera have income elasticities greater than one. This means that consumers will spend more on theater and opera as their income rises. If income elasticity is less than 1 but greater than zero, it is considered to be inelastic and may in dicate that consumers regard it as a necessity good. If income elasticity is Cross-price elasticity measures the consumers' response to a change in the price of related goods.