Question

If increasing the admission charge for National Parks increases the National Park Service's total revenue, then the demand for National Park visits is: Multiple Choice inelastic. elastic. perfectly elastic. a perfectly horizontal line.

Answer 1

Answer: inelastic

Explanation:

If increasing the admission charge for National Parks increases the National Park Service's total revenue, then the demand for National Park visits is inelastic.

This shows that a change in price will lead to a minimal change in the quantity demanded by the consumers. Even though price was increased, the number of visitors to the park rarely changed. This will lead to increase in revenue.