What would happen to the equilibrium price and quantity of golf club memberships if the price of landscaping and grass maintenance went up, the price of golf clubs increased, fewer golf courses decided to offer memberships, and health officials announced that playing golf was bad for you?

Question

Quizplus · Accepted Answer

The increase in maintenance and golf club costs would likely lead to higher prices for golf club memberships, reducing demand. Fewer golf courses offering memberships would decrease supply, and negative health announcements would further reduce demand. Both reduced supply and demand would lead to a decrease in quantity, but the effect on price is ambiguous because the factors affecting supply and demand could either increase or decrease prices, depending on their relative magnitudes.

What Would Happen to the Equilibrium Price and Quantity of Golf