In the spring and summer of 1993,Chronic Wasting Disease wiped out 25% of the elk herd in Wyoming,and the number of state hunting licenses issued was reduced accordingly.In order to compensate for the decrease in license issuances,Wyoming dramatically increased the price.Unfortunately,this strategy proved unsuccessful as the state reported a 50% decrease in total elk license revenues for '93.Which of the following most accurately describes this economic situation?

Question

Quizplus · Accepted Answer

The 50% decrease in total elk license revenues indicates that the demand for Wyoming elk hunting is price elastic, meaning that as the price increased, the quantity demanded decreased by a greater proportion. If the demand was price inelastic, the decrease in quantity demanded would have been proportionally smaller, resulting in relatively stable revenues despite the increase in price. The information provided does not indicate anything about the elasticity of supply.

In the Spring and Summer of 1993,Chronic Wasting Disease Wiped