Question of Econ about supply and demand?

A gas station very near a professional football stadium parts cars on its lot to make money on game days. Last year it charged $4.00 per car and parked 100 cars. This year it raised the parking price to &5.00 and parked 85 cars. Did the station owner make a good economic decision in raising the parking prices from one year to the next? Use economic theory about Supply and Demand to explain and show me the calculations.

Thank you

yes the owner made a good decision.

Total Revenues = Price * Quantity
$400 = 4 * 100
$425 = 5 * 85

Despite the increase in the price the total revenue increase. So that mean the demand is inelastic.

*It's not necessary for this problem but i calculated the elasticity of demand to be .73 which is in fact inelastic.
Do your own homework.
The owner of the parking station made a good economic decision in raising the parking fee this year because it was able to generate an additional income of $25 (see previous answer). But i suppose the supply and demand analysis theory has nothing to do with this. To put it more accurately, your givens are insufficient to warrant a supply and demand analysis...

Unless you will add some additional information as to the increase of the number of parking space within the area, we can calculate the supply and demand analysis.

The answers post by the user, for information only, does not guarantee the right.

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