How might revenues be affected at a nearby daily fee course if the local tire plant has major layoffs?

When considering how revenues at a nearby daily fee golf course might be affected by major layoffs at a local tire plant, the situation can be analyzed through the lens of economic impact on the local community. The correct answer indicates that revenues would decrease.

When a significant employer, such as a tire plant, initiates layoffs, the local economy can suffer due to reduced disposable income among affected employees. With fewer people earning wages, there is likely to be less consumer spending in the area, including on leisure activities such as golfing. The daily fee course typically relies on discretionary spending from local residents and visitors, and layoffs can lead to fewer golfers patronizing the course as they may prioritize essential expenses over leisure activities.

Additionally, layoff situations often create additional uncertainty in the community, possibly leading to a decrease in overall tourism and local spending as people become more conservative with their finances. This economic environment can compound the decline in revenues for recreational businesses like golf courses.

While the other choices suggest various levels of revenue stability or increases, they do not account for the substantial impact layoffs have on local job security and consumer spending. Therefore, a decrease in revenues is the most logical outcome in this context.