What Would Happen to the Equilibrium Price and Quantity of Golf

question 117

Multiple Choice

What would happen to the equilibrium price and quantity of golf club memberships if the price of landscaping and grass maintenance went up, the price of golf clubs increased, fewer golf courses decided to offer memberships, and health officials announced that playing golf was bad for you?

• A) price will fall and the effect on quantity is ambiguous
• B) price will rise and the effect on quantity is ambiguous
• C) quantity will fall and the effect on price is ambiguous
• D) quantity will rise and the effect on price is ambiguous

Understand the significance of revenue, net income, and expense in financial statements.

Grasp the concept of cash flow and its importance for short-term financial decision-making.

Identify and explain the differences between assets, liabilities, and equity.

Understand the role of budgets in planning and controlling organizational finances.

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Definitions:

Excess Capacity

A situation in which a company can produce more goods or services than currently demanded, due to underused resources.

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, indicating the efficiency beyond the breakeven point.

Capital-Intensive

Describing industries or processes that require a high level of capital investment in machinery and equipment relative to labor.

Labor-Intensive

A process or industry that requires a high input of labor relative to capital in the production of goods or services.