What would happen to the equilibrium price and quantity of golf club memberships if the price of landscaping and grass maintenance fell, the price of golf clubs fell, more golf courses decided to offer memberships, and health officials announced that playing golf was good for you?

Question

Quizplus · Accepted Answer

The decrease in maintenance and golf club costs would likely lower the cost of offering golf memberships, potentially leading to a lower price or more memberships offered. An increase in golf courses offering memberships increases supply. Health officials promoting golf as beneficial would likely increase demand. Both increased supply and demand typically lead to a higher quantity, but the effect on price is ambiguous because it depends on the relative shifts in supply and demand.

What Would Happen to the Equilibrium Price and Quantity of Golf