If increasing the admission charge for National Parks increases the National Park Service's total revenue,then the demand for National Park visits is:
A) inelastic.
B) elastic.
C) perfectly elastic.
D) a perfectly horizontal line.

Question

Quizplus · Accepted Answer

If increasing the admission charge leads to an increase in total revenue, it implies that the majority of visitors are still willing to pay the higher admission fee, despite the increase. This suggests that the demand for National Park visits is inelastic - a change in price has a relatively small impact on the quantity demanded. In contrast, if the demand were elastic, a small increase in price would result in a significant decrease in the quantity demanded. Similarly, if the demand were perfectly elastic, a change in price would result in no change in revenue, which is not the case here. Therefore, the best choice is A) inelastic.

If Increasing the Admission Charge for National Parks Increases the National