You Are in Charge of the Local City-Owned Aquatic Center

question 462

Multiple Choice

You are in charge of the local city-owned aquatic center.You need to increase the revenue generated by the aquatic center in order to meet expenses.The mayor advises you to increase the price of a day pass.The city manager recommends reducing the price of a day pass.You realize that

• A) the mayor thinks demand is elastic, and the city manager thinks demand is inelastic.
• B) both the mayor and the city manager think that demand is elastic.
• C) both the mayor and the city manager think that demand is inelastic.
• D) the mayor thinks demand is inelastic, and the city manager thinks demand is elastic.

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