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1. The Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues. The Interior Department must believe that:
A. Park goers are very responsive to price changes.B. The demand for park services is elastic.C. The percentage increase in fees will be greater than the percentage decrease in the number of park visitors.D. Demand is unitary elastic, and thus the number of visitors will NOT decrease.
2. If the price elasticity of DVD recorders is -0.325 and price increases 20%, what happens to the quantity of DVD recorders demanded?
A. Quantity decreases by 26%B. Quantity decreases by 6.5%C. Quantity increases by 15%D. Quantity increases by 21%
In providing assistance to the states like Washington has in the past attached strings which have dictated state legislation.
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True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences). You can also use diagrams if they are helpful. Each correct answer is worth.
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