The Case in Point on Costa Rica's National Parks indicated that the parks charged _____ prices for foreign visitors because their demand was more _____ than that of local citizens.
A) higher; inelastic
B) higher; elastic
C) lower; inelastic
D) lower; elastic

Question

Quizplus · Accepted Answer

The case indicated that the parks charged higher prices for foreign visitors, which implies that their demand was more inelastic than that of local citizens. Inelastic demand means that changes in price do not significantly affect the quantity demanded. If the demand for the parks by foreign visitors was elastic, raising the prices would cause a significant drop in their visits, and the parks would not have charged higher prices. Therefore, choice A is the best option.

The Case in Point on Costa Rica's National Parks Indicated