You are in charge of the local city-owned golf course.You need to increase the revenue generated by the golf course in order to meet expenses.The mayor advises you to decrease the price of a round of golf.The city manager recommends increasing the price of a round of golf.You realize that
A) the mayor thinks demand is elastic,and the city manager thinks demand is inelastic.
B) both the mayor and the city manager think that demand is elastic.
C) both the mayor and the city manager think that demand is inelastic.
D) the mayor thinks demand is inelastic,and the city manager thinks demand is elastic.

Question

Quizplus · Accepted Answer

The mayor believes that lowering the price will increase total revenue, indicating elastic demand. The city manager believes that raising the price will increase total revenue, indicating inelastic demand.

You Are in Charge of the Local City-Owned Golf Course