You Are in Charge of the Local City-Owned Golf Course

question 388

Multiple Choice

You are in charge of the local city-owned golf course.You need to increase the revenue generated by the golf course in order to meet expenses.The mayor advises you to decrease the price of a round of golf.The city manager recommends increasing the price of a round of golf.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.