A City Wants to Raise Revenues to Build a New

question 400

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 elastid.

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Definitions:

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, ensuring stability and trust in the currency's value.

CVPs

Critical Value Points, significant markers or thresholds in a business or project that are vital for success.

Mass Market

A large group of customers with very similar needs and problems.

Toilet Paper

A soft paper product designed for personal hygiene and cleaning after using the toilet.