7. Price Elasticitiy of Demand You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. What should you do to increase revenue if the price elasticity of demand is 2.4? O Raise the admission price Lower the admission price O Nothing, revenue is maximized at current admission price

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 11PA: You are the curator of a museum. The museum is running short of funds, so you decide to increase...
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7. Price Elasticitiy of Demand
You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue.
What should you do to increase revenue if the price elasticity of demand is 2.4?
Raise the admission price
Lower the admission price
O Nothing, revenue is maximized at current admission price
Transcribed Image Text:7. Price Elasticitiy of Demand You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. What should you do to increase revenue if the price elasticity of demand is 2.4? Raise the admission price Lower the admission price O Nothing, revenue is maximized at current admission price
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