Gloria works for a museum in a large city with many other museums. Her boss proposes that the museum should raise the price of admission to increase revenues. Gloria was a good student in her economics principles course. How should she advise her boss?

What will be an ideal response?


If there are many museums in the city demand for museum admissions is likely to be elastic. If Gloria's museum raises the price of admission, this will reduce revenues. She should advise her boss against a price increase.

Economics

You might also like to view...

If both a buyer and a seller have the same information, they are said to have symmetric information.

Answer the following statement true (T) or false (F)

Economics

The international agreement signed in 1947 to promote world trade by reducing tariffs and other barriers to international trade was called

A) GATT. B) NAFTA. C) WTO. D) Bretton-Woods agreement.

Economics

From ________ the stock market as measured by the S&P 500 index had a record boom.

A. 2000-2002 B. 1973-1976 C. 1986-1988 D. 1995-2000

Economics

B. Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good. a. On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society, determine the collective demand schedule on the assumption that the good is a public good Instructions:

Economics