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

question 4

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 decrease the price of a day pass.The city manager recommends increasing 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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Definitions:

Unpleasant Outcomes

Negative consequences or results that arise from specific actions or situations.

Reinforcement Theory

A psychological concept suggesting that behavior can be shaped by rewarding or punishing outcomes.

Law of Effect

A principle in psychology that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are not.

Premise

A premise is a previous statement or proposition from which another is inferred or follows as a conclusion.