In an episode of the TV show The Simpsons, the Simpsons find that their pet elephant Stampy is eating them out of the house and home. So they decide to charge admission to people to come to see the elephant. They begin with a price of $1, and 58 people come to see the elephant. But that doesn’t raise enough money to feed the elephant. So they raise the price. Will a higher price of admission increase the revenue the family receives? Explain why or why not.
In an episode of the TV show The Simpsons, the Simpsons find that their pet elephant Stampy is eating them out of the house and home. So they decide to charge admission to people to come to see the elephant. They begin with a price of $1, and 58 people come to see the elephant. But that doesn’t raise enough money to feed the elephant. So they raise the price. Will a higher price of admission increase the revenue the family receives? Explain why or why not.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In an episode of the TV show The Simpsons, the Simpsons find that their pet elephant Stampy is eating them out of the house and home. So they decide to charge admission to people to come to see the elephant. They begin with a
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