Question

You are on the manager of Bronx Zoo with the responsibility to decrease annual admission fares. You would recommend a decrease in the monthly fares only if you thought the demand curve for the Bronx Zoo visits was: a. Inelastic b. Elastic c. Unitary elastic d. Perfectly elastic

Answer 1

B. Relative elastic

Explanation:

For relative elastic demand,

Change in the monthly fares will causes greater change in demand.

That is, decrease in monthly fares will cause a greater increase in demand.

Which is not true for A. Relative inelastic c. Unitary elastic d. Perfectly elastic