Last Semester There Were 5,000 Parking Spaces Available on Campus

question 121

Multiple Choice

Last semester there were 5,000 parking spaces available on campus.The price of a parking permit was $80 per semester,and the quantity demanded equaled the quantity supplied at this price.Suppose the number of parking spaces increases by 10% and the elasticity of demand for parking is 0.5.Parking Services should ________ the price of a permit by ________ to guarantee that quantity demanded will equal quantity supplied.

• A) decrease; 10%
• B) decrease; 20%
• C) decrease; 5%
• D) increase; 10%

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Definitions:

Budgets

Financial plans that estimate revenue and expenditures over a specific time period.

Potential Bottlenecks

Points in the production process that can cause delays due to limited capacity or resources, impacting overall productivity.

Cash Collections

The total amount of money received from customers over a period, including payments for goods or services sold.

Schedule Of Cash Collections

A detailed plan that shows when a company expects to receive cash from accounts receivable or other revenue sources.