If the demand for golf is price inelastic and your local public golf course increases the greens fees for using the course, you would expect:
A) a decrease in total revenue received by the course.
B) an increase in total revenue received by the course.
C) an increase in the amount of golf played on the course.
D) no change in the amount of golf played on the course.

Question

Quizplus · Accepted Answer

If the demand for golf is price inelastic, it means that golfers are unlikely to change their behavior in response to a price increase. Therefore, the increase in greens fees is expected to result in an increase in total revenue received by the course. This is because the increase in fees more than offsets any decrease in the quantity demanded. $	extbf{Choice A}$ is incorrect because there would not be a decrease in total revenue. $	extbf{Choice C}$ is unlikely because the price increase may deter some golfers from playing, but the increase in fees may not be enough to attract new golfers. $	extbf{Choice D}$ is also incorrect because the price increase is likely to have some effect on the quantity demanded (even if it's small).

If the Demand for Golf Is Price Inelastic and Your