Answer to Question #290283 in Microeconomics for Rainii

Question

Imagine you are the curator of a museum and the museum is running out of funds.so, you want to increase the revenue of the museum. To do so should you increase or decrease the price of museum tickets? Explain

Answer 1

The curator of the museum should know that the museum fee is inelastic. Its demand is quite highly inelastic. people and tourists will have to go to the museum and still watch and read history regardless of the entrance fee. The curator should then increase the price of entrance fee which will then increase the revenues.