View the step-by-step solution to:

Question

"The Necco Street Garage has offered evening/overnight parking for $4.50 for many years. Drivers can leave their

car in the garage anytime after 6 PM as long as they remove the car by 7 AM the next morning. About half of the garage spaces are filled on most nights, averaging about 105 cars per night. A new manager decides to increase the price to $5.50. After keeping this new pricing for one year, she reviews her records and finds that only about 95 cars use the overnight parking at the higher price. She made an A in microeconomics at Babson, and she decides to"


" a. To consider an even higher price. b. To consider keeping the pricing at the new level. c. To consider reducing the price to the old level. d. To consider reducing the price to a level below the old level. "


the professor said the correct answer is A. why is that?

Top Answer

View the full answer
Document 73_2.jpg

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question