2. It has been estimated that the price elasticity of demand for attending baseball games is 0.23. Other things held constant, a 10 percent increase in attendance can be explained by a:

A. 43.48 percent fall in the price of a ticket.
B. 43.48 percent rise in the price of a ticket.
C. 23 percent fall in the price of a ticket.
D. 23 percent rise in the price of a ticket.

To determine the percentage change in price that can explain a given percentage change in demand, we can use the price elasticity of demand formula:

Price Elasticity of Demand = Percentage Change in Quantity Demanded / Percentage Change in Price

In this case, the price elasticity of demand for attending baseball games is given as 0.23. We need to find the percentage change in price that can explain a 10 percent increase in attendance.

Let's denote the percentage change in attendance as ΔQ and the percentage change in price as ΔP. We know that ΔQ = 10 percent (given).

To find ΔP, we can rearrange the formula:

Price Elasticity of Demand = ΔQ / ΔP
0.23 = 10 / ΔP

Now, we can solve for ΔP:

ΔP = 10 / 0.23 ≈ 43.48 percent

This means that a 10 percent increase in attendance can be explained by a 43.48 percent rise in the price of a ticket.

Therefore, the correct answer is B. 43.48 percent rise in the price of a ticket.