A City Wants to Raise Revenues to Build a New

question 135

Multiple Choice

A city wants to raise revenues to build a new municipal swimming pool next year.The mayor suggests that the city raise the price of admission to the current municipal pools this year to raise revenues.The city manager suggests that the city lower the price of admission to raise revenues.Who is correct?

• A)Both the mayor and city manager would be correct if demand were price elastic.
• B)Both the mayor and city manager would be correct if demand were price inelastic.
• C)The mayor would be correct if demand were price elastic;the city manager would be correct if demand were price inelastic.
• D)The mayor would be correct if demand were price inelastic;the city manager would be correct if demand were price elastic.

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Definitions:

Truth-in-Lending Law

A law at the federal level in the U.S. that aims to encourage the knowledgeable use of consumer credit through mandates on disclosures regarding its terms and expenses.

Credit Offers

Proposals extended by lenders to potential borrowers detailing the terms under which credit can be extended.

Uniform Law

Legislation instituted across various jurisdictions, aiming to harmonize legal principles on specific issues.

Consent Decree

A legal agreement that resolves a dispute between two parties without admission of guilt (but with the court still having jurisdiction).