Question

Suppose a professional basketball game is to be played at a suburban arena, which increases demand for parking on the night of the game. If the suburban area has the ability to create additional parking during periods of peak demand, thern
○ A the supply of parking will be more elastic and the price of parking will increase by a relatively large amount the night of the game
O B. the supply of parking will be more elastic and the price of parking will increase by a relatively small amount the night of the game.
O C. the supply of parking will be more inelastic and the price of parking will increase by a relatively small amount the night of the game.
O D. the supply of parking will be more inelastic and the price of parking will not change the night of the game.
E. the supply of parking will be perfectly elastic and the price of parking will increase by a relatively large amount the night of the game.

Answer 1

Answer:

A. the supply of parking will be more elastic and the price of parking will increase by a relatively large amount the night of the game.