"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?