Three Different Voters Demand Curves for a Public Park Are

question 93

Multiple Choice

Three different voters demand curves for a public park are shown on the graphs below.

For a 2-acre public park,the market reservation price is ___ per acre.

• A) $6.
• B) $8.
• C) $14.
• D) $26.

---

Definitions:

Operating Leverage

An indicator of how increases in revenue lead to expansions in operating income, showing the level of fixed expenses within a company's cost framework.

Fixed Costs

Costs that do not change with the level of goods or services produced by a business.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials or production costs.

Variable Costs

Costs that vary directly with the level of production or output.