Recall the Application about the price of vanity license plates in Virginia to answer the following question(s).
-Recall the Application. Which of the following is a reason for the state of Virginia to increase its revenue while the price for vanity plates increases?
A) The demand for vanity plates in Virginia is inelastic.
B) The demand for vanity plates in Virginia is elastic.
C) The demand for vanity plates in Virginia is equal to 1.
D) There is insufficient information to draw a conclusion.

Question

Quizplus · Accepted Answer

If demand for vanity plates in Virginia is inelastic, it means that the increase in price will not greatly affect the number of plates sold, allowing the state to increase their revenue without a significant decrease in demand.

Recall the Application About the Price of Vanity License Plates