The demand for community center workout sessions in a local suburb, can be represented by the demand curve, P = 30 - 0.5Q, and the supply curve, P = 0.1Q, where P is the price of a workout class and Q represents the number class participants each week. Suppose the director of the community center believes they understand the concept of consumer surplus and attempts to capture some of it by charging patrons an annual membership fee of $100 per patron (in addition to the per class fee). Will the membership fee be successful in increasing revenues for the community center? Explain why or why not. (Hint: the consumer surplus calculated in part c is measured per week, the membership fee is per year, and there are 52 weeks in a year.)

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Impact of Membership Fee on Community Center Revenue The membership fee of 100 per year will likely not be successful in significantly increasing reve... View the full answer