The municipal swimming pool charges lower entrance fees to local residents than to nonresidents. Assuming that this pricing strategy increases the profits of the pool, we can conclude that nonresidents must have a _____ demand for swimming at the pool than residents.

Question

Quizplus · Accepted Answer

Nonresidents must have a less elastic demand, meaning they are less sensitive to price changes, allowing the pool to charge them higher prices without significantly reducing their attendance.

The Municipal Swimming Pool Charges Lower Entrance Fees to Local