Answer: Different understanding of the nature of commodity
Explanation: The disagreement in the given case occurs due to the fact that the mayor thinks that the demand for the services of golf course is inelastic and the manager thinks that it is elastic.
Elasticity refers to the change in the demand for a commodity due to its change in price. Therefore, the manager is advising to decrease the price so that the demand for the golf course will increase leading to increase in revenue.
Although the mayor thinks that the number of customers will remain same at a higher price.
