Multiple Choice
You manage a popular nightclub and lately revenues have been disappointing.Your bouncer suggests that raising drink prices will increase revenues, but your bartender suggests that decreasing drink prices will increase revenues.You aren't sure who is right, but you do know that:
A) your bouncer thinks the demand for drinks is elastic, while your bartender thinks the demand for drinks is inelastic.
B) your bouncer thinks the demand for drinks is inelastic, while your bartender thinks the demand for drinks is elastic.
C) both the bouncer and bartender think the demand for drinks is elastic.
D) both the bouncer and bartender think the demand for drinks is inelastic.
Correct Answer:
Verified
Correct Answer:
Verified
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