If the demand for golf is price elastic 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) no change in total revenue received by the course.
D) an increase in the amount of golf played on the course.

Question

Quizplus · Accepted Answer

If the demand for golf is price elastic, a small increase in the greens fees will lead to a proportionally larger decrease in the quantity demanded. As a result, the total revenue received by the course will decrease because the increase in price will more than offset any gains from the decrease in quantity demanded.

If the Demand for Golf Is Price Elastic and Your