(Last Word)Based on the concept of price elasticity of demand,which of the following cases is most likely to occur?
A) Golf courses charging higher prices for golf during the week than on weekends.
B) Movie theaters charging higher prices for senior citizens.
C) Colleges charging lower tuition for low-income students.
D) Airlines charging lower fares for business travelers.

Question

Quizplus · Accepted Answer

The most likely case to occur based on the concept of price elasticity of demand is when a producer lowers prices for a certain group of consumers with low-income, since they are highly sensitive to price changes and are likely to respond positively to a price cut. The other options may not be as successful, as golfers and moviegoers may still be willing to pay higher prices during certain times, and airlines may have less elasticity with business travelers who are less price-sensitive due to their need to travel for business purposes.

(Last Word)Based on the Concept of Price Elasticity of Demand,which