Question

A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4.00 per car and parked 1,000 cars. This year it raised the parking price to $5.00 and parked 850 cars. Did the station owner make a good economic decision in raising the parking prices from one year to the next? Explain.

Answer 1

Answer:

Explanation:

Revenue recieved last year from parking cars = $4*1000 = $4000 Revenue recieved this year from parking cars = $5*850 = $4250 Since the revenue increased by $250 between the two years, the station owner made a good decission in raising the ticket prices. Also, he...