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Result in increased prices of gym membership

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In order to promote more exercise among teens and young adults, suppose that anew, national public health campaign using social media is very successful inmotivating this population to actively pursue gym memberships.

a. Appraise this statement: The public health campaign will result in increased prices of gym membership, but not increased quantity of teens and young adultsbuying memberships. (Assume that the supply curve is positively sloped, and thedemand curve is negatively sloped.)

b. Appraise this statement: Whether the public health campaign will be successful inincreasing the number gym memberships among teens and young adults dependson the elasticity of supply curve. Specifically, the more inelastic the supplycurve, the less successful the campaign will be.

Reference no: EM131263291

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