Is the NY Parks Department Profit Maximizing?

The WSJ reports that the NY Parks Department doubled tennis fees and it looks like season passes will fall by about 50%. That means an elasticity of about -1. It is a little more complicated than this of course. At the same time, incomes have fallen due to the recession. Also, fewer passes mean shorter waits for courts, making a pass more attractive now. They were probably expecting inelastic demand. But an elasticity of -1 means this price increase did not change revenues.

So, it looks like the NY Parks Department is not maximizing profits. I am not sure we would want them to.

HT: Mungowitz