Last Semester There Were 5,000 Parking Spaces Available on Campus

Multiple Choice

Last semester there were 5,000 parking spaces available on campus.The price of a parking permit was $80 per semester,and the quantity demanded equaled the quantity supplied at this price.Suppose the number of parking spaces increases by 10% and the elasticity of demand for parking is 0.5.Parking Services should ________ the price of a permit by ________ to guarantee that quantity demanded will equal quantity supplied.

A) decrease; 10%
B) decrease; 20%
C) decrease; 5%
D) increase; 10%