In order to promote more exercise among teens and young adults, suppose that a new, national public health campaign using social media is very successful in motivating 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 adults buying memberships. (Assume that the supply curve is positively sloped, and the demand curve is negatively sloped.)
b. Appraise this statement: Whether the public health campaign will be successful in increasing the number gym memberships among teens and young adults depends on the elasticity of supply curve. Specifically, the more inelastic the supply curve, the less successful the campaign will be.