A city wants to raise revenues to build a new municipal swimming pool next year

A city wants to raise revenues to build a new

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27.A city wants to raise revenues to build a new municipal swimming pool next year. The mayor suggests that the city raise the price of admission to the current municipal pools this year to raise revenues. The city manager suggests that the city lower the price of admission to raise revenues. Who is correct?a.Both the mayor and city manager would be correct if demand were price elastic.b.Both the mayor and city manager would be correct if demand were price inelastic.c.The mayor would be correct if demand were price elastic; the city manager would be correct if demand were price inelastic.d.The mayor would be correct if demand were price inelastic; the city manager would be correct if demand were price elastic.
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28.You have just been hired as a business consultant to determine what pricing policy would be appropriate in order to increase the total revenue of a bakery. The first step you would take would be to29.Holding all other forces constant, if decreasing the price of a good leads to an increase in total revenue, then the demand for the good must be30.Last year, Shelley bought 6 pairs of designer jeans when her income was $40,000. This year, her income is $50,000, and she purchased 10 pairs of designer jeans. Holding other factors constant, it follows that Shelley31.Suppose goods A and B are substitutes for each other. We would expect the cross-price elasticity between these two goods to bea.positive.b.negative.c.either positive or negative. It depends whether A and B are normal goods or inferior goods.d.either positive or negative. It depends whether the current price level is on the elastic or inelastic portion of the demand curve.32.If the cross-price elasticity of two goods is positive, then the two goods are
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