You are in charge of the local city-owned golf course.You need to increase the revenue generated by the golf course in order to meet expenses.The mayor advises you to increase the price of a round of golf.The city golf course manager recommends reducing the price of a round of golf.What is the reason for their disagreement
A)The mayor thinks demand is elastic and the city golf course manager thinks demand is inelastic.
B)Both the mayor and the city golf course manager think that demand is elastic.
C)Both the mayor and the city golf course manager think that demand is inelastic.
D)The mayor thinks demand is inelastic and the city golf course manager thinks demand is elastic.

Question

Quizplus · Accepted Answer

The mayor suggests raising the price of a round of golf, which implies that he believes demand is inelastic (meaning that despite an increase in price, demand will stay relatively stable). The city golf course manager recommends reducing the price of a round of golf, indicating that they believe demand is elastic (that price changes will significantly affect demand). Thus, they are in disagreement about the elasticity of demand.

You Are in Charge of the Local City-Owned Golf Course