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Question 1:
Tourism is often seen as a way of generating income, particularly foreign exchange. The economic spin-off effects are viewed as the most important aspect of tourism development. However, at the same time, tourism may have adverse effects on an economy.
Making use of appropriate examples, critically analyze the different economic impacts resulting from the development of tourism in an economy and suggest policies to mitigate the negative impacts while at the same time promoting positive ones.
Question 2:
Outline the characteristics of a monopolistically competitive market and distinguish between its short run and long run equilibrium. Use relevant examples from the tourism and/or hospitality industry to support your arguments.
Question 3:
The effects of price changes in tourism are far more complex in tourism than are the effects of changes in income.
Explain the concept of Price Elasticity of Demand and explain how this concept might be useful to a manager of a tourism/hospitality business attempting to increase revenue.
wHEN WAGE IS $6.05, HOW MANY HOURS ARE WORKED A WEEK?
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Commodities that are viewed as luxuries typically have price elastic demand, and commodities that are requirements have price inelastic demand. There is easily no substitute for a
Cost in the Long Run Cost minimization with the Varying Output Levels -A firm's expansion path shows minimum cost combinations of labor and capital at each level of output.
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