Answer to Question #290374 in Microeconomics for shanks

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

Solution:

You should decrease the price of museum tickets.

 

Since visiting a museum is a luxury for many people, increasing the price will not be a prudent idea as it will turn away most of the visitors, thus reducing the museum's revenue.

Reducing the price of museum tickets would be an excellent idea as it would be able to attract many visitors, including low-income earners, thus increasing the museum's revenue tenfold.