Posted: March 29th, 2016

higher fees at the facilities were meant to generate more revenue for the city

a) The article states that ‘higher fees at the facilities were meant to generate more revenue for the city’. What does this suggest about the City of Manhattan’s estimate of the own-price elasticity of demand in the market for tennis courts? Explain your answer. (1 mark) b) The article states that ‘the city expected it would take in an extra $6.3 million … but the revenue grew by just $1.1 million.’ What does this suggest about the actual own-price elasticity of demand in the market for tennis courts? Is it elastic or inelastic? Is it more or less elastic than what the City of Manhattan expected? Explain your answer. (2 marks)

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Live Chat+1-631-333-0101EmailWhatsApp