Answer:
Inelastic; 5%; fall; 10%; rise
Explanation:
Price elasticity of demand is always negative for normal goods. This happens because of the law of demand, that demand falls with rise in price.
Price elasticity between 0 and 1 shows inelastic demand.
This means that there is smaller change in demand due to a greater change in price level.
Price elasticity of demand is -0.5.
If the price falls by 10%, demand will increase by 5%.
The revenue will fall, because of greater fall in price.
If the price increases by 20%, demand will fall by 10%.
Revenue will increase because of greater increase in price.
Answer:
<h2>In this case,visit to the Butchart Garden is an excludable and non-rivalrous good and is an example of a Club Good.</h2>
Explanation:
First,since the Burchart Gardens charges an admission fee of $30 for each visitor,anyone who has not paid the fee cannot or will not be able to have access inside the garden.Therefore,it is currently not a free service for all the visitors.In this sense,a visit to the Butchart Garden is excludable.It can be assumed that any visitor who wishes to come inside the garden and have a visit will have to mandatorily pay the admission fee.
Secondly,as Butchart Garden is a public area and anyone who pays the admission fee can officially gain access to the garden,enjoyment of the natural and aesthetic beauty of the garden by any one visitor does not reduce the simultaneous enjoyment of any other visitor who has paid the admission fee and hence,gained access to the garden.In economic language,if we consider the garden visit as a particular commodity,then the consumption of the commodity by any one visitor or consumer does not reduce the simultaneous consumption of any other visitor/s or consumer/s,provided that they have all paid the admission fee to gain access to the commodity or garden in this case.Therefore,visits to the Butchart Garden can be considered as non-rivalrous.
Now,since the visit to the Butchart garden is both excludable and non-rivalrous in nature,it can be considered as an example of a Club Good.
