You Are in Charge of the Local City-Owned Leisure Centre

You are in charge of the local city-owned leisure centre and have been charged with increasing its revenue. The Mayor advises you to decrease the price of a day pass. The City Manager recommends increasing the price of a day pass. What does this tell you about their understanding of price elasticity of demand?

A) The Mayor thinks the demand is elastic and the City Manager thinks the demand is inelastic
B) The mayor think sthe demand is inelastic and the City Manager thinks demand is elastic
C) Nothing - demand may be more or less elastic, but this has no bearing on the issue in question