The price elasticity of demand for lift tickets

Assignment Help Business Economics
Reference no: EM131161289

As the manager of a ski resort, you want to increase the quantity of lift tickets sold by 10%. Your staff economist has determined that the price elasticity of demand for lift tickets is 2. To increase sales by the desired amount, you should:

ecrease the price of a lift ticket by 5%.

decrease the price of a lift ticket by 2.5%.

increase the price of a lift ticket by 5%.

increase the price of a lift ticket by 2.5%.

Reference no: EM131161289

Questions Cloud

Examples of company online marketing campaigns : Identify an online company that manages social media, for example; Lyfe Marketing Social Media Management company ,and explain its strategy to build its online brand. Provide examples of the company's online marketing campaigns for (1) acquisition..
Describe how power of the supreme court has changed : Describe how power of the Supreme Court has changed, by comparing the power of the first court (Marshall's court) to the present day court (CSPAN video Roberts Court).
Example of good and negative externality associated : Provide an example of a good and a negative externality associated with it. Explain the possible ways that negative externalities can be controlled. Describe what happens in the market if a tax is imposed on the output of the good (not the externalit..
Approach to marketing versus the value approach : Chapter 1 Compare and contrast a four Ps approach to marketing versus the value approach (creating, communicating, and delivering value). Select and examine these approaches for at least one routine and non-routine problem.
The price elasticity of demand for lift tickets : As the manager of a ski resort, you want to increase the quantity of lift tickets sold by 10%. Your staff economist has determined that the price elasticity of demand for lift tickets is 2. To increase sales by the desired amount, you should:
Define the concept of the tyranny of the majority : Define the concept of the "tyranny of the majority."  - Does this idea prove the founders of the United States government correct in mistrusting the public at large?
Segmentation data help marketers : How does segmentation data help marketers conduct surveys better?
Briefly explain the meaning of moral hazard : Immediately following the financial crisis of 2007-08, the federal government assisted companies (for example, Citibank and AIG) that were in financial distress, arguing that they were “too big to fail.” Some economists complained that such support b..
Explore the external environment of your company : Explore the external environment of your company/product/brand. Specifically, how have changes or evolution in the following areas affected your company/product/brand?

Reviews

Write a Review

Business Economics Questions & Answers

  Utility function-number of units of good

Sam’s utility function is U(x1, x2) = 2x1 + x2, where x1 is the number of units of good 1 he consumes per week and x2 is the number of units of good 2 he consumes per week. Sam has $200 a week to spend. If he belonged to the club, he could buy good 2..

  What is the new unemployment rate

The labor force is 100 million and the unemployment rate is 5 percent. If one million people quit looking for a job, what is this called and what is the new unemployment rate?

  How wages are determined in labor markets

Which of the following are microeconomic problems? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. Slow growth. The pricing policies of firms. Un..

  What is out-of-sample prediction

What is out-of-sample prediction? Say you had 500 time-series observations and would like to determine how well your model is performing. How would you suggest obtaining an out-of-sample prediction?

  What is the present value dollars for all cashflows

A manufacturing company invests $100,000 in a new piece of equipment. Operating expenses for this new piece of equipment is estimated to be $4,000 starting EOY1 and increasing by $200 per year at the EOY2 and for the next 9 additional years. What is ..

  What should be a firms goal when managing foreign exchange

What should be a firms goal when managing foreign exchange and associated risks? How might the firm reach these goals?

  Find out the probability that the std error

Assume that the distribution of starting salaries for newly qualified CA. Find out the probability that the std error.

  The lag between the time the need for physical action

The lag between the time the need for physical action is recognized and the time action is taken is referred to as the

  What impact will free trade have on economic growth

Say you owe money to Big River Bank. Will you gain or lose from an unanticipated decrease in inflation? How could inflation make people turn to exchange by barter? What impact will free trade have on economic growth?

  What is the yield to the investor who holds the bonds

A U.S. government bond matures in 10 years. Its quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bond’s face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds..

  Demand and supply equations for rice

Assume a colleague at the ERS estimated the following demand and supply equations for rice in the U.S. Calculate the equilibrium price and quantity of rice in the U.S. Calculate the equilibrium price and quantity for South Korea

  Find the nash equilibrium of the cournot duopoly

Two firms both have the same constant marginal cost of $20 ≥ 0 and zero fixed cost; market price P = 140 − 2(q1 + q2). Both firms choose outputs to compete. Find the subgame perfect equilibrium outcome of the Stackelberg Duopoly game with Firm 1 movi..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd