A City Wants to Raise Revenues to Build a New

Multiple Choice

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) the mayor
B) the city manager
C) The answer depends on the price elasticity of demand.
D) The answer depends on the costs of construction of the new municipal swimming pool.